ITC has disclosed a strategic investment in Sproutlife Foods Private Limited (SFPL), a direct-to-consumer (D2C) business engaged in the production and distribution of goods for health-conscious customers under the clean label, digital-first brand “Yoga Bar.” According to the business, it will take three to four years to acquire 100% of SFPL.
The corporation will purchase a 47.5% share in SFPL by March 31, 2025, and the remaining stake will be purchased based on predetermined value standards, subject to other terms outlined in the contractual contracts.
ITC intends to boost its healthy food segment!
According to Hemant Malik, divisional chief executive of ITC Limited’s foods division, this transaction is an opportunity that supports the aim of the company’s foods business to amass a sizable portfolio in the nutrition-led healthy foods sector.
“Yoga Bar has quickly established itself as a top brand in the healthy foods area, powered by strong market positioning and a range of creative products,” the author continued.
The company said in a statement that the acquisition will enable ITC to broaden its portfolio to meet future needs and to strengthen its market position in the “Good for You” category, which at the moment includes goods like Aashirvaad Multi-Grain Atta, Aashirvaad Nature’s Super Foods, the Farmlite line of biscuits, Sunfeast Protein Shake, and B Natural Nutrilite ABC Beverage.
The predicted growth of Yoga Bar will rely on business IT’s strengths in areas like sales and distribution, sourcing, product development, and digital.
According to co-founders Suhasini Sampath Kumar and Anindita Sampath Kumar, ITC has a history of creating brands and utilizing strengths that include customer awareness, backward connections to the agro supply chain, and a distribution network.
They said that “This alliance would strengthen Yoga Bar’s competitive edge and advance it from the existing annualized run rate of nearly Rs 100 crore.”
It will be interesting to see market giants like ITC acquiring recent startups, especially the ones famous among younger generations with the focus on a niche market like health and fitness.