ITC's new entry..! Healthy Start..!

Sowmiya Sriram
ITC's new entry..! Healthy Start..!
While the food habits among the indian youth are becoming a fade and the number of people walking around without time even to eat in their busy lives is increasing day by day, the habit of eating energy bars has increased in india as a way to provide food for their especially healthy food. An energy bar with a high protein content of small grains, fruits, and nuts called bar was introduced and became popular. As this culture is growing rapidly in india, ITC has decided to take over the brand yoga Bar, which has been trading in this sector for many years and trade it across the country. ITC, which is the largest FMCG company in india, has signed an agreement to acquire Sproutlife Foods, a start-up company that owns the yoga Bar brand.
Sproutlife Foods in the D2C segment is a fast-growing company in metros. Currently, the agreement between ITC and Sproutlife Foods is to take over the entire company in the next 3-4 years. In the first phase, it has decided to acquire 47.5 percent shares by march 2025 through a multi-phase acquisition.
According to the plan, ITC will invest Rs 175 crore and acquire a 39.4 percent stake by february 15 and acquire the remaining stake by march 31, 2025, by investing Rs 80 crore. Also, ITC will acquire the balance sheet of Sproutlife Foods at a pre-determined valuation within the next 3 months. In the financial year 2021-22, Sproutlife Foods has achieved a turnover of around Rs 68 crore, compared to Rs 32 crore in 2019-20.
Yoga Bar has a health-oriented portfolio including nutrition bars, muesli, oats, and cereals under the brand. While its business in offline stores is slowly increasing, it is doing well in online sales. Increasing its dominance in offline stores is a problem for big brands like ITC. It was in this context that ITC decided to acquire Sproutlife Foods. Through this Sproutlife Foods will greatly help ITC expand its future-ready portfolio and increase its market presence in the 'good for you' space.
ITC's 'Good for You' segment currently includes Ashirwad Multi Grain Atta, Ashirwad Nature-S Super Foods, Formlite Biscuits, Sunfeast protein Shake, and B Natural Nutrilite ABC Drink.
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