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

New Delhi [India], April 1 (ANI): 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)