The investment values the Chennai-based restaurant chain at approximately USD 350 million and marks Bodhi Tree Systems’ entry into India’s food services sector
Investment firm Bodhi Tree Systems has agreed to invest USD 180 million to acquire a majority stake in Chennai-based restaurant chain Adyar Ananda Bhavan (A2B), marking its entry into India’s food services sector. The transaction values the South Indian food chain at approximately USD 350 million, according to an industry source.
The joint statement issued by the companies did not disclose the exact percentage of equity being acquired. The deal is among the larger investments in India’s food services industry and comes amid growing investor interest in established domestic food brands with an expanding international presence.
Founded in 2021 by James Murdoch, younger son of media tycoon Rupert Murdoch and founder of Lupa Systems, and former Star India and Disney executive Uday Shankar, Bodhi Tree Systems is a strategic investment and operating platform focused on building consumer-facing businesses. The A2B transaction marks its first investment in the food sector.
Bodhi Tree’s previous investments include a 36 per cent stake in test-preparation company Allen Career Institute for USD 600 million in May 2022 and its investment in JioStar, the joint venture between Reliance Industries and Walt Disney, 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.
A2B Expands From Sweet Shop To International Food Brand
Founded around five decades ago by brothers K.T. Srinivasa Raja and K.T. Venkatesan, A2B began as a sweet shop and has since expanded into restaurants, packaged sweets and savouries. The company has established a strong presence in Tamil Nadu and Karnataka, with around 160 outlets across India and more than 30 international outlets. Its overseas markets include Singapore, the United States, Australia, Malaysia and the UK. A2B employs more than 15,000 people.
Financial disclosures show that Adyar Ananda Bhavan Sweets India Private Limited, the company’s registered Indian entity, reported revenue of Rs 1,487 crore in the financial year ended March 2025. Its net profit stood at Rs 36.2 crore during the period.
The transaction comes against the backdrop of increasing investor interest in established Indian food businesses, with domestic snacks and regional cuisines finding a wider consumer base in international markets. In March 2025, Singapore-based investment firm Temasek acquired a stake in the snacks business of Haldiram’s at a reported valuation of approximately USD 10 billion.
While international restaurant chains such as Domino’s have built a presence in India, domestic players continue to account for a significant part of the country’s restaurant market. South Indian cuisine, particularly dishes such as dosas and idlis, has also gained popularity among consumers in overseas markets.
Bodhi Tree To Strengthen Operations, Prepare A2B For Public Markets
Under the partnership, Bodhi Tree and A2B will focus on strengthening the restaurant chain’s leadership and talent pool, developing digital capabilities and upgrading its kitchens and manufacturing facilities to global standards. The companies also plan to expand A2B’s range of healthy and nutritious food offerings and scale its restaurant and packaged food businesses across domestic and international markets.
Shankar will serve as chairperson of A2B’s newly constituted board of directors. He said the partnership would focus on building a professionally managed food business while expanding the brand’s international reach.
“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.
Raja said the business had evolved considerably since its inception, growing from a small sweet shop into a food brand serving millions of families.
“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.
The partnership is also expected to prepare A2B for a potential public market listing, although the companies have not disclosed a timeline or further details regarding the proposed transition.
“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.
A2B’s business spans dine-in restaurants, sweet and savoury outlets and packaged food products distributed through retail and online channels. The investment is expected to support the company’s next phase of expansion while strengthening its operational and manufacturing capabilities.
Veda Corporate Advisors acted as the exclusive financial advisor to A2B, while Khaitan & Co served as its legal advisor. Ernst & Young provided financial and tax due diligence services to Bodhi Tree Systems, while Alvarez & Marsal handled commercial due diligence. Trilegal acted as Bodhi Tree’s legal advisor, and Moelis & Company served as its transaction advisor.
