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ITC Makes Yoga Bar Maker Sproutlife a Subsidiary, Gains Board Control

ITC Limited has formally announced that Sproutlife Foods Private Limited, the manufacturer of the Yoga Bar brand, has become its subsidiary effective April 1, 2026. The conglomerate secured this status by acquiring the right to nominate a majority of directors on Sproutlife's board, despite currently holding 47.50% of its share capital. This move is part of ITC's strategic plan to augment its portfolio in the foods segment, specifically targeting innovative and health-focused products. Sproutlife, a digital-first brand with growing offline presence, reported a turnover of Rs 200 crore for the 2024-25 fiscal year.

Key Points: ITC Subsidiary Sproutlife Foods, Yoga Bar Maker, Board Control

  • ITC gains right to nominate majority of Sproutlife directors
  • Move formalizes multi-year acquisition strategy for Yoga Bar brand
  • Sproutlife reported Rs 200 crore turnover in FY25
  • Acquisition aligns with ITC's 'future ready' foods portfolio expansion
2 min read

Sproutlife Foods now a subsidiary of ITC; Acquires right to nominate Directors on the Board from April 1

ITC formally makes Sproutlife Foods, owner of Yoga Bar, a subsidiary, securing right to nominate majority of directors on its board from April 1.

"acquisition of Sproutlife is in line with the strategy to augment the Company's future ready portfolio in foods segment - ITC Filing"

New Delhi, April 1

ITC Limited has formally announced that Sproutlife Foods Private Limited, the manufacturer of the health-focused brand Yoga Bar, has become its subsidiary effective April 1, 2026. The Kolkata-headquartered conglomerate confirmed this in a regulatory filing, marking a significant milestone in its multi-year acquisition strategy for the nutrition-led food brand.

According to the filing, ITC "with effect from today i.e., 1st April, 2026 has acquired the right to nominate majority of the Directors on the Board of Sproutlife". This change in governance structure means that "Sproutlife has become a subsidiary of the Company with effect from 1st April, 2026, in terms of Section 2(87)(i) of the Companies Act, 2013".

While the company's shareholding in Sproutlife currently stands at "47.50% of its share capital (on a fully diluted basis)," the right to control the board was secured through a Shareholders' Agreement originally executed on April 19, 2023.

The diversified giant emphasized that the move is part of a broader corporate roadmap aimed at evolving its market offerings. ITC stated that the "acquisition of Sproutlife is in line with the strategy to augment the Company's future ready portfolio in foods segment". The target entity operates within the "new and innovative food products" sector, a category ITC has been actively targeting to diversify its fast-moving consumer goods business.

"Sproutlife is engaged in the business of manufacturing and selling food products under the trademark 'Yoga Bar'. Positioned as a digital first brand, Yoga Bar currently has high salience of on-line sales (D2C, e-commerce platforms etc.) with growing presence in offline stores," the filing said.

Sproutlife Foods reported a turnover of Rs 200 crore for the 2024-25 fiscal year. This follows a turnover of Rs 108 crore in 2023-24 and Rs 88 crore in the 2022-23 period.

This acquisition follows the announcement by the company in January of 2023, stating, "ITC has announced plans to acquire 100% of Sproutlife Foods (SFPL), a direct-to-consumer (D2C) startup and parent company of health food brand 'Yoga Bar' over a period of three to four years. The acquisition will enable ITC to augment its future-ready portfolio and enhance market presence in the 'Good for You' space. The move is in line with chairman Sanjiv Puri's 'ITC Next' strategy, which focuses on building a future-ready portfolio of products that serve evolving consumer needs."

- ANI

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Reader Comments

R
Rohit P
Interesting to see the corporate strategy play out. They had a 47.5% stake but are now taking board control. This gives them operational command without a full 100% buyout yet. Smart way to de-risk and integrate gradually. The turnover growth of Sproutlife is impressive!
A
Aman W
I just hope the product quality doesn't drop. Often when a big conglomerate takes over a niche 'digital-first' brand, the soul of the startup gets lost in corporate processes. Yoga Bar's appeal was its authenticity. ITC, please don't turn it into just another packet on the shelf.
S
Sarah B
As someone who follows FMCG trends, this is a textbook 'ITC Next' strategy move. They're systematically building a portfolio for the future consumer. The 'Good for You' space is critical. Acquisitions like this help them compete directly with the likes of Nestlé and HUL in the premium health segment.
K
Karthik V
Turnover doubling in two years! From 88 Cr to 200 Cr. That shows the massive demand for healthy snacks. ITC saw the potential early and locked it in with that 2023 agreement. Good for the Yoga Bar founders and team. A solid exit while the brand continues to grow.
M
Meera T
I appreciate the clarity in the regulatory filing. It's good to see large Indian companies being transparent about such transitions. The reference to the specific section of the Companies Act shows they're doing it by the book. Hope this brings more innovation to ITC's food portfolio.

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