ITC Ltd board approved the merger of Sproutlife Foods, the maker of Yoga Bar, with the parent company on November 2. This move aims to streamline business operations and improve resource use. The merger will take effect from April 1, 2026, and no new shares will be issued to investors.
Synopsis
ITC Ltd has received board approval for a scheme to merge Sproutlife Foods into its operations. This move is designed to streamline business processes and enhance value creation for ITC. Sproutlife, focusing on health-centric food products, achieved a turnover of Rs 451.71 crore in FY26. ITC clarified that no new shares will be issued in this merger, set to be effective from April 1, 2026.
ITC Ltd on Monday approved a scheme of amalgamation of Sproutlife Foods Private Limited, the maker of Yoga Bar products, with the parent company.
The scheme, approved at a board meeting held on November 2, will be subject to necessary statutory and regulatory approvals and will take effect from April 1, 2026, ITC said in a regulatory filing.
Sproutlife Foods, a wholly owned subsidiary of ITC, operates in the health-focused food segment, manufacturing and selling products such as bars, muesli, oats, protein-rich foods and peanut butter under its digital-first brand Yoga Bar.
According to ITC, Sproutlife reported a turnover of Rs 451.71 crore and total assets of Rs 150.07 crore in FY26. Its net worth stood at Rs 5.22 crore. The figures are based on audited standalone financial statements for FY26.
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The conglomerate said the proposed amalgamation is aimed at enabling seamless integration of business operations, unlocking synergies and maximising value creation opportunities. It is also expected to facilitate optimal deployment of financial, managerial and operational resources, improve capital allocation through consolidation of cash flows and financial resources, and simplify the group's corporate structure by reducing the number of operating entities.
The company also clarified that the amalgamation will not result in any change in ITC's shareholding pattern.
ITC Q2 Results
ITC Ltd reported an 18.5% decline in consolidated net profit for the Q2 FY27 to Rs 4,229 crore. Its net revenue rose 5% to Rs 20,454 crore from Rs 19,455 crore a year earlier.
A sharp fall in earnings from the company's cigarette business weighed on overall profitability despite strong growth in its FMCG, agriculture and paper businesses.
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