In one of the largest deals in India’s food services sector, Chennai-based restaurant chain Adyar Ananda Bhavan (A2B) has sold a majority stake to Bodhi Tree Systems for $180 million.
Bodhi Tree Systems is a strategic investment and operating platform founded in 2021 by James Murdoch (founder of Lupa Systems and younger son of media tycoon Rupert Murdoch) and former Star India and Disney executive Uday Shankar. Adyar Ananda Bhavan (A2B) said this was a strategic partnership to drive its ambitious global expansion plans. Interestingly, A2B is Bodhi Tree’s third investment, after acquiring a 36 per cent stake in Allen Career Institute for $600 million in May 2022 and becoming a strategic investor in JioStar in 2023.
“A2B has earned the trust of millions of families through its consistent and reliable quality,” said Murdoch and Shankar, co-founders of Bodhi Tree Systems.
“We are grateful to the co-founders, K.T. Srinivasa Raja and K.T. Venkatesan, for this opportunity to partner with them to build a differentiated, professionally managed Indian food company, one that sets new standards for the sector. While A2B is a formidable brand in India, we are equally impressed by the scale and reach of its operations in Singapore, the United States, Australia, Malaysia, and the UK. We look forward to working with the team to take its authentic cuisine to a far broader global audience,” Shankar said. Shankar will serve as chairperson of A2B’s new board of directors.
A2B is one of South India’s leading food brands for casual dining and packaged South Indian sweets and savouries. Today, it has a strong foothold in Tamil Nadu and Karnataka and a growing presence across India, with 160 outlets domestically, over 30 internationally and more than 15,000 employees. Few brands in South Indian cuisine command the depth of consumer trust, widespread affection and enduring popularity that A2B has built over generations. The investment further reinforces Bodhi Tree’s strategy of building and operating category-leading businesses that combine strong consumer brands, disruptive technology and the ability to serve Indian consumers at scale.
“What began as a sweet shop started by my brother and me 50 years ago is now part of daily life for millions of families, and we are proud of every one of our people who made that possible,” said Raja, co-founder of A2B.
“We are excited to begin this next chapter with Bodhi Tree. The plan we have built together will make A2B a company fit for the public markets, so that our customers, employees and investors can share in its future,” said Venkatesan, co-founder of A2B.
“We are delighted to welcome Bodhi Tree as our partner. James and Uday bring deep experience in building consumer businesses at scale. Together, we look forward to creating new opportunities for our people and taking A2B into many more homes,” he added.
The partnership will focus on strengthening A2B’s leadership and talent, building digital capabilities, modernising its kitchens and manufacturing to global standards, expanding its range of healthy and nutritious food, and growing its restaurants and packaged foods businesses across India and in international markets.
Veda Corporate Advisors acted as the exclusive financial advisor to A2B. Khaitan & Co acted as legal advisor to A2B. Ernst & Young provided financial and tax due diligence services to Bodhi Tree Systems. Alvarez & Marsal provided commercial due diligence services to Bodhi Tree Systems. Trilegal acted as legal advisor to Bodhi Tree Systems. Moelis & Company acted as transaction advisor to Bodhi Tree Systems.
A2B is one of India’s leading food brands, known for the consistency, hygiene and quality of its sweets, savouries and restaurant food. Founded in the late 1970s by K.T. Venkatesan and K.T. Srinivasa Raja, it has a strong foothold in Tamil Nadu and Karnataka and a growing presence across India. A2B runs about 160 restaurants and sweet-and-savoury stores in India, with 32 outlets in Singapore, the United States, Australia and other markets. It also sells packaged sweets and snacks through retail and online channels. The company is headquartered in Chennai and employs more than 15,000 people.