CHENNAI: Bodhi Tree Systems, the investment platform backed by James Murdoch’s Lupa Systems and Uday Shankar, a top executive of the Reliance-Disney India joint venture, is taking a majority stake in Adyar Ananda Bhavan, the 50-year-old South Indian food and sweets chain known as A2B, in a $180 million deal.
The investment gives Bodhi Tree a foothold in one of Tamil Nadu’s best-known food brands. The partnership will focus on strengthening A2B’s leadership and talent, building digital capability, modernising its kitchens and manufacturing to global standards, expanding its range of healthy and nutritious food, and growing its restaurants and packaged foods across India and in international markets.
“We are excited to begin this next chapter with Bodhi Tree,” K T Srinivasa Raja, co-founder of A2B, in a statement said.
A2B’s 160 domestic outlets and 30 abroad employ over 15,000 people
The plan we have built together will make A2B a company fit for the public markets, so that our customers, employees and investors can have a share in its future,” Raja added.
A2B has 160 outlets in India and more than 30 abroad, and employs over 15,000 people. It is strongest in TN and Karnataka. Its overseas operations span Singapore, the US, Australia, Malaysia, Sri Lanka and the UK, a footprint Murdoch and Shankar singled out as a reason to pursue international expansion.
Shankar will chair A2B’s new board. Srinivasa Raja and his brother K T Venkatesan, who started the business as a sweet shop about 50 years ago, remain co-founders.
A2B is Bodhi Tree’s third investment, after ALLEN Career Institute, a coaching group, and JioStar, the Indian streaming and broadcasting business. Bodhi Tree describes its approach as backing consumer companies “at an inflexion point” .
