Chennai's A2B offloads majority stake for $180 mn to James Murdoch, Uday Shankar-led Bodhi Tree

CHENNAI: Adyar Ananda Bhavan (A2B), the Chennai-based sweets, savouries and restaurant chain, has secured a $180 million investment from James Murdoch and Uday Shankar-led Bodhi Tree Systems for a majority stake, as it looks to expand its operations nationally and globally.

Vishnu Shankar, from the A2B family, told DT Next that the funding would be utilised to expand the chain’s footprint across India and overseas, besides supporting its modernisation initiatives in Chennai and Bengaluru.

The partnership will focus on strengthening leadership and talent, building digital capabilities, modernising kitchens and manufacturing facilities to global standards, and expanding its range of healthy and nutritious food.

“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,” said KT Srinivasa Raja, co-founder of A2B, in a statement dated November 12.

He added that the partnership would make A2B a company fit for the public markets, enabling customers, employees and investors to share in its future.

Bodhi Tree co-founders James Murdoch and Uday Shankar said A2B had earned the trust of millions of families through consistent and reliable quality. They said they were looking to build a differentiated, professionally managed Indian food company and take its authentic cuisine to a far broader global audience.

Founded in the late 1970s, A2B has around 160 outlets in India and 32 international outlets across Singapore, the US, Australia, Malaysia and the UK, employing more than 15,000 people.

Uday Shankar will serve as chairperson of A2B’s new board. A2B is Bodhi Tree’s third investment, after ALLEN Career Institute and JioStar.

Veda Corporate Advisors acted as the exclusive financial advisor to A2B, while Khaitan & Co was its legal advisor.

Ernst & Young and Alvarez & Marsal provided financial and tax, and commercial due diligence services, respectively, to Bodhi Tree.

Trilegal was Bodhi Tree’s legal advisor, while Moelis & Company acted as its transaction advisor.