ITC Limited has completed the acquisition of Sproutlife Foods Private Limited, the parent company of the nutrition and healthy foods brand Yoga Bar. The company acquired the remaining equity stake through a secondary purchase, increasing its shareholding from approximately 47.5% to 100%. As a result, Sproutlife became a wholly owned subsidiary of ITC with effect from September 28, 2026.
Transaction Details
ITC acquired 13,445 equity shares of Sproutlife at a cash consideration of approximately ₹6.45 billion. The shares were acquired through a secondary purchase, and the company received confirmation of the transaction on September 28, 2026. The deal did not require any governmental or regulatory approvals, was completed entirely through cash, and gave ITC full ownership and control of the company.
Governance and Disclosure
ITC disclosed the transaction under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The acquisition was classified as an outside related party transaction and was executed at arm's length. The company confirmed that no promoter, promoter group company, or group company held any interest in the share purchase.
Prior Investment History
ITC first invested in Sproutlife in May 2023, acquiring a 39.42% stake for ₹1.75 billion. The company had announced plans in January 2023 to acquire the business in phases and gradually increased its holding to approximately 47.5%. The latest purchase of the remaining 52.5% stake completes that phased acquisition strategy.
Strategic Rationale
ITC stated that the acquisition is aligned with its strategy to strengthen its future ready portfolio in the foods segment. The company has been increasing its exposure to new age and digital first brands that complement its core packaged food business. Sproutlife operates in the fast growing healthy foods category, allowing ITC to expand its consumer base and distribution reach.
Yoga Bar Business Profile
Sproutlife manufactures and sells food products under the Yoga Bar trademark and was incorporated on February 13, 2015. The brand is positioned as a digital first business with strong online sales through direct to consumer and e-commerce platforms. It also has a growing offline retail footprint across India, which remains its sole country of operations.
Financial Performance
Yoga Bar has posted significant growth in recent years, supported by strong demand for its product portfolio. Its audited turnover rose from ₹1.08 billion in fiscal 2024 to ₹2 billion in fiscal 2025. In fiscal 2026, turnover more than doubled to ₹4.52 billion, highlighting the brand's increasing relevance in India's evolving consumer landscape and strong market traction.
Broader Industry Context
The transaction reflects a wider push by legacy fast-moving consumer goods companies to acquire digital-first brands. ITC has also signed a deal to acquire Prasuma, which operates frozen and ready-to-cook food brands. Hindustan Unilever has expanded through Minimalist and OZiva, while Marico has added Cosmix, and Emami and VLCC have also made similar digital-first acquisitions.
With full ownership of Sproutlife, ITC is positioned to scale Yoga Bar across both digital and offline channels while leveraging its extensive distribution network. The completion of this acquisition marks another step in ITC's efforts to build a portfolio of future-ready food brands. Investors and market participants will likely monitor how quickly the company integrates Yoga Bar and accelerates its growth in the health-focused foods segment.