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ITC to acquire FMCG start-up Yoga Bar in the next 3-4 years

ITC to acquire FMCG start-up Yoga Bar in the next 3-4 years

Yoga Bar was founded in 2014 by Suhasini and Aninidita Sampath Kumar in a bid to give the Indian audience a snack brand which is healthy as well as filling.

47.5 per cent stake in SFPL will be acquired in tranches by March 31, 2025. The balance stake will be acquired, based on predefined valuation criteria, subject to other conditions agreed to in the binding documents. 47.5 per cent stake in SFPL will be acquired in tranches by March 31, 2025. The balance stake will be acquired, based on predefined valuation criteria, subject to other conditions agreed to in the binding documents.

Indian legacy brand ITC is all set to acquire Direct-to-Consumer (D2C) snack brand Yoga Bar. The 100 per cent acquisition of Sproutlife Foods Private Limited (SFPL), the company which owns Yoga Bar, will happen over a period of three to four years, according to a statement by ITC.
 
47.5 per cent stake in SFPL will be acquired in tranches by March 31, 2025. The balance stake will be acquired, based on predefined valuation criteria, subject to other conditions agreed to in the binding documents. 

Commenting on this acquisition, Hemant Malik, Divisional Chief Executive, Foods Division, ITC Limited said , “We believe that this investment is an exciting opportunity that aligns with ITC’s food 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.”

He also stated that within a short span of time, Yoga Bar has established itself as a “leading brand in the healthy foods space.” Moreover, impactful market positioning and a range of innovative products are also what makes the snack brand stand out, he stated.


The co-founders of Yoga Bar claimed that this move will add to the competitive advantage of the Bengaluru-based start-up and take it to an annual run rate of over Rs 100 crore. Suhasini and Anindita Sampath Kumar said, “We are delighted to join hands with ITC in Yoga Bar’s next phase of growth. ITC has a long history of building world-class brands, leveraging its core competencies which encompass superior understanding of the consumer, strong backward linkages with agri supply chain and a deep and wide distribution network. We are delighted that ITC and Yoga Bar will work together to build one of the largest brands in the healthy foods space.”


This acquisition will help ITC augment its future-ready portfolio and enhance market presence in the ‘Good for You’ space which currently includes Aashirvaad Multi-Grain Atta, Aashirvaad Nature’s Super Foods, Farmlite range of biscuits, Sunfeast Protein Shake, B Natural Nutrilite ABC Beverage among others.


Yoga Bar was founded in 2014 by the sisters in a bid to give the Indian audience a snack brand which is healthy as well as filling. At present, Yoga Bar derives its sales majorly from its website as well as ecommerce platforms. However, it also has a few offline retail touchpoints. 
 

Also Read: IPO-bound OYO to file and submit updated DRHP to SEBI in February

Published on: Jan 18, 2023, 11:33 AM IST
Posted by: Bhavya Kaushal, Jan 18, 2023, 11:26 AM IST