ITC Ltd, on Tuesday said it is set to acquire 100% stake over a three-to-four-year period in Sproutlife Foods Private Limited that sells health bars and muesli under the Yoga Bar brand.
This investment is in line with the ‘ITC Next’ strategy outlined by chairman Sanjiv Puri that focuses also on building a future-ready portfolio of products, the company said in a statement on Tuesday. The move marks yet another attempt by ITC to capture new, emerging consumer trends. It has also invested in Direct-to-Consumer baby care brand Mylo apart from investment in Mother Sparsh.
ITC will acquire 100% of SFPL over a period of 3 to 4 years. 47.5% stake in SFPL will be acquired, in tranches, by March 31st, 2025; the balance stake will be acquired, basis pre-defined valuation criteria.
Initial investment of Rs 175 crores will be made through primary subscription and secondary purchases for acquisition of 39.4% of the paid-up share capital on a fully diluted basis, which is expected to be completed by 15th February, 2023 or such other later date as may be mutually agreed upon. Further infusion of Rs 80 crores will be made through primary subscription, in one or more tranches, by 31st March, 2025 or such other later date as may be mutually agreed upon, based on pre-agreed pre-money valuation, it said in a filing to the exchanges.
Started by two sisters, Yoga Bar today has a portfolio of nutrition bars, muesli, oats and cereals.
"We believe that this investment is an exciting opportunity that aligns with ITC’s foods business’ aspiration to build a formidable portfolio in the nutrition-led healthy foods space. We look forward to scaling the Yoga Bar brand offering superior and healthy consumer choices," said Hemant Malik, Divisional Chief Executive, Foods Division, ITC Limited.
For fiscal year ended 31 March 2022, the company reported a turnover of Rs 68 crore.
"We are confident that this partnership will add to Yoga Bar’s competitive advantage and take it to the next level from the current annualised run rate of over Rs 100 crores," said Suhasini Sampath Kumar and Anindita Sampath Kumar, co-founders.