Bodhi Tree Systems invests $180 mn for majority stake in Chennai’s Adyar Ananda Bhavan

Mumbai: Investment platform Bodhi Tree Systems on Thursday acquired a majority stake in the restaurant and snack shop chain Adyar Ananda Bhavan (A2B) for $180 million, providing fuel for its domestic and overseas expansion.

Veda Corporate Advisors was financial advisor to A2B while Moelis & Co. was transaction advisor to Bodhi Tree Systems. The size of the stake sold and A2B's valuation were not disclosed.

Mint was the first to report in July that Bodhi Tree Systems, backed by James Murdoch’s Lupa Systems and Uday Shankar, was in talks to acquire the company at a valuation of ₹3,000-3,500 crore.

“A2B has earned the trust of millions of families through its consistent and reliable quality,” said Murdoch and Shankar, who jointly founded Bodhi Tree Systems in 2021. “While A2B is a formidable brand in India, we are equally impressed by the scale and reach of its operations in Singapore, the US, Australia, Malaysia, and the UK,” they added. Shankar will now serve as chairperson of A2B’s new board of directors.

The transaction aims to enable A2B build a differentiated and professionally managed Indian food company. The partnership will focus on strengthening A2B's leadership and talent, building digital capability, modernizing its kitchens and manufacturing to global standards, expanding its cuisine and growing its restaurants and packaged foods across India and in international markets.

The Chennai-based company, founded as a sweet shop by brothers KT Srinivasa Raja and KT Venkatesan in the 1970s has expanded into a larger franchise over the years. It is one of South India’s leading food brands for casual dining and packaged South Indian sweets and savouries. It has a strong foothold in Tamil Nadu and Karnataka and a growing presence across India, with 160 Indian over 30 overseas outlets, with over 15,000 employees.

The investment 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.

“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,” Srinivasa said. “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,” Venkatesan added.

A2B is Bodhi Tree’s third investment, after Allen Career Institute and JioStar. Bodhi Tree partners with businesses that create enduring social value. It seeks out companies on an assured footing in consumer sectors at an inflexion point and works alongside their teams.