INDIA —Indian consumer goods enterprise ITC has finalized the complete acquisition of Sproutlife Foods, the manufacturer behind the healthy snack brand Yoga Bar, by purchasing the remaining 52.5% equity stake for approximately INR 6.45 billion. The secondary transaction involved 13,445 equity shares and closed on September 28, elevating ITC's ownership from 47.5% to 100%. Based in Kolkata, ITC is a diversified Indian conglomerate with a prominent market presence spanning fast-moving consumer goods, hotels, paperboards, packaging, and agribusiness.
This strategic move accelerates ITC's broader strategy to diversify beyond its traditional tobacco business and expand its footprint in high-margin, health-oriented consumer product lines. Sproutlife Foods has demonstrated rapid financial growth, expanding its annual turnover from INR 1.08 billion in 2023-24 to INR 2 billion in 2024-25, and reaching INR 4.52 billion in 2025-26. Bringing the brand fully under ITC's operational fold provides immediate access to extensive distribution channels, enhanced supply chain efficiencies, and deep capital resources.
The transaction highlights the growing consolidation within India's packaged food sector, where established consumer goods firms are increasingly absorbing agile direct-to-consumer brands to meet shifting dietary preferences. As urban consumers show greater demand for high-protein, clean-label, and convenient nutrition alternatives, major market players are leveraging acquisitions rather than organic growth to capture specialized market segments swiftly.
For industry stakeholders and investors, the buyout signals continued strength in Indian consumer packaged goods M&A activity. ITC's full integration of Sproutlife Foods creates competitive pressure for rival consumer goods companies seeking to scale their functional food offerings. Furthermore, the successful exit of early backers underscores robust valuation metrics for emerging health food brands in rapidly scaling consumer markets.
