ITC Expands FMCG Portfolio with Rs 553-Crore Sproutlife Acquisition
In a strategic move to strengthen its presence in the health and wellness space, FMCG major ITC has announced the acquisition of an additional 47.5% stake in Sproutlife Foods Pvt. Ltd., the parent company of clean-label brand Yoga Bar. The Rs 553 crore transaction takes ITC’s total ownership in Sproutlife to 100%.
The acquisition, finalized through a share purchase agreement, allows ITC to fully integrate Sproutlife’s portfolio into its diversified FMCG business, aligning with the company’s strategy to tap into India’s growing demand for nutrition-rich, health-focused food products. The deal is expected to be completed by March 31, 2025, in one or more tranches.
Capitalizing on the Health and Wellness Trend
Yoga Bar, founded in 2014, has gained strong traction among urban, health-conscious consumers for its clean-label offerings, which include energy bars, muesli, oats, and protein-rich breakfast options. With rising consumer awareness around nutrition and wellness-driven consumption, the brand has grown into a trusted name in the segment.
ITC had initially acquired a 39.4% stake in Sproutlife in February 2023, followed by an incremental 13.3% midway through 2023. The latest move to acquire the remaining shares underlines ITC’s commitment to scaling up its participation in emerging health-led food categories and leveraging synergies across its packaged foods portfolio.
Strategic Synergies and Market Implications
Industry analysts view the deal as part of ITC’s broader strategy to accelerate growth in value-added innovative formats. With the Yoga Bar brand now under full control, ITC gains direct access to a niche consumer base and an agile innovation pipeline, potentially enhancing its competitiveness against fast-growing D2C players and legacy brands expanding into health-led segments.
The move also reflects a wider shift among legacy FMCG players to bolster portfolios through acquisitions that offer differentiated positioning and digital-first scalability. As consumer preferences evolve, consolidation in high-growth areas like clean-label and functional foods is likely to intensify.
For ITC, the extension into premium health foods supports its broader FMCG ambitions, with the company targeting double-digit