ITC Limited Acquires Majority Control of Sproutlife Foods, Making it a Subsidiary
ITC Limited has acquired majority control of Sproutlife Foods Private Limited, making it a subsidiary effective April 1, 2026. This move strengthens ITC's food portfolio. Sproutlife, known for its 'Yoga Bar' brand, reported ₹200 crore turnover in FY25. The acquisition is part of ITC's strategic growth in the foods segment.
The acquisition of a subsidiary, especially in a growing segment like food products, can have a medium-term impact on ITC's overall business diversification and revenue streams, although the immediate financial impact might not be substantial given Sproutlife's current turnover.
The acquisition of majority control and making Sproutlife Foods a subsidiary is a strategic move that aligns with ITC's growth strategy in the foods segment, indicating a positive development for the company.
ITC Limited has announced that, effective April 1, 2026, it has acquired the right to nominate the majority of directors on the Board of Sproutlife Foods Private Limited. Consequently, Sproutlife has become a subsidiary of ITC Limited in terms of Section 2(87)(i) of the Companies Act, 2013.
This acquisition aligns with ITC's strategy to enhance its future-ready portfolio within the foods segment. Sproutlife Foods is involved in the manufacturing and sale of food products under the trademark ‘Yoga Bar’. It operates as a digital-first brand with a significant online sales presence through direct-to-consumer channels and e-commerce platforms, alongside a growing presence in offline stores.
Sproutlife Foods Private Limited was incorporated on February 13, 2015. Its audited turnover for the last three years was ₹200 crore in 2024-25, ₹108 crore in 2023-24, and ₹88 crore in 2022-23. The company operates primarily in India. ITC previously held approximately 47.50% of Sproutlife's share capital on a fully diluted basis. The acquisition of board control was executed based on a Shareholders’ Agreement dated April 19, 2023.
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ITC Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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