ITC Ltd has approved the merger of Sproutlife Foods Private Limited, the company behind health-focused food brand Yoga Bar, with the parent company as part of a move to consolidate operations and strengthen business synergies.
ITC’s board approved the scheme of amalgamation at a meeting held on November 2, 2026. The company said in a regulatory filing that the proposed merger will be effective from April 1, 2026, subject to the required statutory and regulatory approvals.
Sproutlife Foods, a wholly owned subsidiary of ITC, operates in the health and nutrition segment. Its product portfolio includes nutrition bars, muesli, oats, protein-rich foods and peanut butter, marketed under its digital-first brand Yoga Bar.
The company reported a turnover of Rs 451.71 crore in FY26, with total assets of Rs 150.07 crore and a net worth of Rs 5.22 crore. The figures are based on its audited standalone financial statements for the financial year.
ITC said the merger is aimed at integrating business operations more efficiently, unlocking operational synergies and maximising value creation opportunities. The consolidation is also expected to support better utilisation of financial, managerial and operational resources.
According to the company, bringing Sproutlife directly into ITC will help improve capital allocation through the consolidation of cash flows and financial resources. It will also simplify the group’s corporate structure by reducing the number of operating entities.
ITC clarified that the proposed amalgamation will not result in any change in its shareholding pattern and no fresh shares will be issued as part of the transaction.
The merger comes as health-focused and nutrition-led food products gain increasing attention in India’s packaged food market. Through Yoga Bar, ITC has a presence in categories such as protein snacks, breakfast cereals and convenient nutrition products, complementing its wider packaged foods portfolio.
The consolidation is expected to bring the Yoga Bar business more closely within ITC’s operating structure, providing opportunities for greater integration and resource optimisation as the company strengthens its presence in the health and wellness food segment.