ITC Ltd, one of India’s leading diversified private sector companies, has approved the amalgamation of Sproutlife Foods Pvt Ltd, its wholly owned subsidiary that operates the health food brand Yoga Bar, with effect from April 1, 2026.
The proposed Scheme of Amalgamation is intended to integrate the operations of the two companies, improve resource utilisation and simplify ITC’s corporate structure.
Scheme targets operational synergies
Sproutlife Foods is engaged in the manufacture and sale of food products, including bars, muesli, oats, protein-rich foods and peanut butter. Its products are marketed under Yoga Bar, a new-age, digital-first brand catering to health-conscious consumers.
The amalgamation is expected to enable seamless integration of business operations and unlock value through operational synergies.
Focus on resource optimisation
The proposed merger will facilitate optimal deployment of financial, managerial and operational resources by enabling the combined business to access shared talent and common resources.
It is also expected to improve capital allocation through the consolidation and optimisation of cash flows and financial resources.
Corporate structure to be simplified
The amalgamation will reduce the number of operating entities within the ITC group, simplifying its corporate holding structure.
Sproutlife Foods is a related party of ITC. The company said the proposed transaction would be undertaken at arm’s length.
Acquisition background
There will be no change in ITC’s shareholding pattern following the amalgamation.
ITC acquired the remaining 52.5% stake in Sproutlife Foods for ₹645 crore, making the food products company a wholly owned subsidiary.