Bodhi Tree Acquires Majority Stake in A2B in $180 Million Deal at $350 Million Valuation

Adyar Ananda Bhavan (A2B), the Chennai-based South Indian vegetarian restaurant and packaged-food chain, has sold a majority stake to Bodhi Tree Systems in a $180 million investment deal. The transaction marks Bodhi Tree’s entry into India’s food services sector and is aimed at transforming the nearly five-decade-old business into a larger Indian food brand with domestic and international ambitions.

Bodhi Tree Systems, the investment platform co-founded by James Murdoch and Uday Shankar, will invest approximately ₹1,600 crore to acquire majority ownership of A2B. An industry source cited by Reuters estimated the company’s valuation at around $350 million. The exact stake acquired and the detailed ownership structure have not been publicly disclosed. Uday Shankar will become chairperson of A2B’s newly constituted board of directors.

Bodhi Tree Invests $180 Million in A2B

The transaction was announced on November 12, 2026, making it one of the notable investments in India’s food services industry.

Bodhi Tree is backed by James Murdoch’s Lupa Systems and Uday Shankar, a media executive who previously held senior leadership positions at Star India and Disney’s Indian operations. The investment platform was established in 2021 to invest in and help build businesses with significant growth potential.

The $180 million investment gives Bodhi Tree a majority stake in A2B, although the companies have not disclosed the precise percentage of ownership being transferred.

Deal detail	Information
Acquirer	Bodhi Tree Systems
Target company	Adyar Ananda Bhavan (A2B)
Investment value	$180 million
Approximate rupee value	₹1,600–1,700 crore
Reported company valuation	Around $350 million
Stake acquired	Majority stake
New board chairperson	Uday Shankar
Financial adviser to A2B	Veda Corporate Advisors

The $350 million valuation is an estimate attributed to an industry source, rather than a valuation formally disclosed by the companies. The transaction’s financial structure and exact ownership percentages have not been made public.

Veda Corporate Advisors acted as A2B’s exclusive financial adviser, while Moelis & Company advised Bodhi Tree on the transaction.

Nearly 50-Year-Old A2B Expands Beyond South India

A2B traces its origins to 1979, when brothers K.T. Srinivasa Raja and K.T. Venkatesan established a sweet shop in Chennai. The business gradually expanded from a traditional sweets outlet into a restaurant and packaged-food company known for South Indian vegetarian cuisine.

The company built its strongest presence in Tamil Nadu and Karnataka before expanding into other Indian markets. Its product portfolio includes restaurant meals, sweets, savouries and packaged food products sold through retail outlets and online channels.

A2B currently operates approximately 160 outlets in India and more than 30 internationally. Its overseas presence includes markets such as Singapore, the United States, Australia, Malaysia and the United Kingdom.

The company employs more than 15,000 people across its operations, according to reports on the transaction.

Its established consumer brand and international footprint were among the factors highlighted by Bodhi Tree’s founders when explaining the investment.

Expansion Plans Include Western India and Europe

One of the key objectives of the partnership is to expand A2B beyond its traditional South Indian markets.

The company plans to strengthen its presence in western India, where demand for regional Indian food brands has created opportunities for restaurant chains and packaged-food businesses. It also intends to expand into international markets, with Europe identified as a potential growth region.

The strategy will involve growing both the restaurant network and the packaged-food business. These two segments offer different expansion opportunities: restaurants help build brand recognition and direct consumer relationships, while packaged products can reach customers through retail distribution and online channels.

A2B also plans to expand its retail and export operations. Its established range of sweets and savouries could provide a foundation for reaching Indian consumers overseas and attracting a wider audience interested in Indian cuisine.

However, the company has not announced a detailed outlet-opening schedule, specific investment targets for individual markets or a timeline for its international expansion.

Manufacturing Modernisation and Digital Capabilities

The investment is also expected to support improvements in A2B’s manufacturing and operating infrastructure.

The partnership plans to modernise the company’s kitchens and manufacturing facilities to improve efficiency and bring production standards closer to international requirements. Its existing factories in Chennai and Bengaluru are among the facilities identified for modernisation.

A2B is also exploring the possibility of establishing another manufacturing facility to support its retail and export businesses.

The proposed improvements are important because packaged-food expansion requires consistent product quality, reliable supply chains, production capacity and distribution infrastructure. A larger manufacturing network could help the company serve more retail outlets and international markets.

The partnership will additionally focus on strengthening leadership and talent, improving digital capabilities and expanding the company’s product range. This includes developing healthier and more nutritious food options to respond to changing consumer preferences.

Bodhi Tree’s involvement is expected to bring investment and operational expertise as A2B moves towards a more professionally managed business structure.

A2B Reports ₹1,487 Crore Revenue in FY25

A2B’s financial performance provides an indication of the scale of the business entering the partnership.

According to regulatory disclosures cited by Reuters, Adyar Ananda Bhavan Sweets India Private Limited reported sales of ₹14.87 billion, or approximately ₹1,487 crore, for the financial year ended March 2025. The company recorded a net profit of ₹362 million, equivalent to approximately ₹36.2 crore, during the same period.

Financial metric	FY25
Sales	₹1,487 crore
Net profit	₹36.2 crore

These figures relate to the reported registered entity and should not automatically be treated as consolidated financial figures for every business associated with the A2B brand.

The transaction also comes at a time when investors are showing interest in established Indian food businesses with strong regional identities and opportunities to expand nationally and internationally.

For A2B, the partnership could provide access to capital and expertise needed to grow beyond its existing geographical concentration.

Bodhi Tree’s Investment Portfolio

The A2B transaction marks Bodhi Tree Systems’ third major investment, following its involvement in education and media businesses.

In May 2022, Bodhi Tree agreed to invest $600 million for a 36% stake in ALLEN Career Institute, the Indian test-preparation company. The investment was aimed at supporting the education company’s expansion and technology-led development.

Bodhi Tree also became a strategic investor in JioStar, the media and entertainment joint venture between Reliance Industries and Disney. Its investment in the media business was reported at approximately $650 million.

The A2B transaction represents a new sector for the investment platform. Rather than focusing on education or media, Bodhi Tree is now backing a consumer-facing food business with an established brand, physical retail network and packaged-products operation.

The investment strategy involves working with businesses to strengthen their operations and build larger companies rather than simply providing financial capital.

A2B Partnership Signals Potential Public Listing

A potential stock market listing is another important part of the company’s longer-term ambitions.

A2B co-founder K.T. Srinivasa Raja said the partnership would help make the business ready for public markets, allowing customers, employees and investors to participate in its future growth.

The statement signals an ambition to develop A2B into a professionally managed company with the governance and operational structure required for a possible listing.

However, neither A2B nor Bodhi Tree has announced a confirmed IPO timeline, issue size or listing venue. Any public-market transaction would depend on the company’s future performance, preparations and market conditions.

The Bigger Picture

The Bodhi Tree-A2B transaction highlights growing investor interest in established Indian food brands that have the potential to scale beyond their original regional markets. A2B brings decades of consumer recognition, a large restaurant network and an established packaged-food business. Bodhi Tree brings capital and experience in building consumer-facing businesses.

The larger opportunity lies in turning a strong regional food brand into a professionally managed national and international business. Modernising manufacturing, strengthening digital operations and expanding distribution could help A2B increase its reach. However, execution will be critical, particularly as the company enters new markets with different consumer preferences and competitive conditions.

Looking Ahead

A2B’s immediate priorities will include expanding its restaurant footprint, strengthening packaged-food distribution and upgrading its manufacturing infrastructure. Its plans for western India and Europe could provide new growth opportunities, while improvements in kitchens and factories may help support higher production volumes and more consistent operations.

Investors will also watch whether the partnership can improve the company’s financial performance and prepare it for a potential public listing. Although the $180 million deal provides significant backing, A2B’s ability to translate that investment into sustainable growth will depend on execution, brand consistency and profitability across its expanding business.