ITC is buying a 100 percent stake in the Bengaluru-based healthy snack company, Yoga Bar. The food conglomerate will acquire 100 percent of Yoga Bar’s parent company, Sproutlife Foods Private Limited (SFPL), over a period of 3 to 4 years. The company said that it will acquire a 47.5 percent stake in SFPL in three tranches by March 31, 2025.
Yoga Bar was founded in 2015 by sisters Suhasini and Anindita Sampath, who were the largest shareholders of the company with a 49 percent stake. The healthy snacks startup recorded a turnover of Rs 68 crore in 2021–22, Rs 39 crore in 2020–21, and Rs 32 crore in 2019–20. It sells products such as protein bars, muesli, peanut butter, whey protein, and gluten-free oats.
ITC will invest Rs. 175 crore for the acquisition of a 39.4 percent stake, which is to be completed by February 15, 2023, and will further infuse Rs. 80 crores for the remaining 47.5 percent stake by March 31, 2025, whereas the purchase of the balance stake will be done on the basis of pre-defined valuation criteria, within 3 months from the date on which SFPL will provide audited financial statements for the financial year ending on March 31, 2026.
Last year, it was reported that ITC was competing with Nestle India to buy Yoga Bar. Reportedly, Dabur and VC fund A9 Capital were also exploring the possibility. Yoga Bar expected to raise Rs 150 crores. ITC enters the fray for the yoga bar stakes. Delhi-based Dabur and VC fund A91 Capital were among those who also looked at the opportunity but passed. Yoga Bar’s parent company, Sproutlife, has been in the market to raise Rs 150 crore from strategic and financial investors.
This purchase fulfils the “ITC Next” strategy articulated by its Chairman, Sanjiv Puri, which focuses on building a future-ready portfolio of products that serve evolving consumer needs. With this acquisition, ITC aims to fortify its healthy foods portfolio, which includes products such as Aashirvaad multi-grain atta, Aashirvaad nature’s super foods, the Farmlite range of biscuits, Sunfeast protein shake, and B natural Nutrilite ABC beverage, among others.
Hemant Malik, divisional chief executive, the foods division, ITC, said, “We believe that this investment is an exciting opportunity that aligns with ITC’s Foods Business’ aspiration to build a formidable portfolio in the nutrition-led healthy foods space.”
Spencer plans to enter the value retail format, focusing on smaller towns.
To expand its retail footprint in India’s smaller cities, Spencer’s Retail is set to enter the value retail format with the launch of a hypermarket chain, Spencer’s Value Market.
According to Shashwat Goenka, sector head for retail and FMCG at the RP-Sanjiv Goenka Group, the emergence of a new consumer class in smaller cities that want to enjoy modern trade shopping experiences while also seeking value The chain will focus on discounts on a variety of assortments.
Goenka added, “What’s changed over the last four to five years, and more so with a pandemic, is this whole class of value-conscious consumers that have really come up.” As we look to go beyond the 35 cities, we have to adopt a model that will cater to this value-conscious consumer.
For starters, the company has converted five of its existing Spencer’s stores into the value format: Karimnagar, Warangal, Kurnool, Guntur, Bhimavaram, and Vijayanagaram. Spencer will convert ten of its existing stores to value formats in total.
Goenka said in the next fiscal year, half of the company’s new stores under the Spencer’s brand will be in the value format. The company will open 14-18 stores under Spencer’s banner, including both the regular as well as the value format, next fiscal.
Spencer’s Retail, part of the RP-Sanjiv Goenka Group, operates two retail formats: its flagship Spencer’s brand and Nature’s Basket. In FY22, the company reported a turnover of ₹2,376 crore. Spencer’s, its flagship food and general merchandise format, operates 152 stores across 11 Indian cities. Natures Basket, the more premium retail chain, has over 36 stores across India.