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Adyar Ananda Bhavan, better known as A2B, has sold a majority stake to Bodhi Tree Systems for $180 million, or more than ₹1,600 crore.
Note: It is one of the largest transactions in India’s food-service industry.
Breaking it down: Bodhi Tree will now own more than half of A2B and gain control over major business decisions.
The exact stake purchased has not been disclosed. An industry estimate values the entire company at around $350 million, or roughly ₹3,100 crore.
A2B’s founding family has not sold the whole business. It will remain a shareholder and continue participating in the company’s growth.
Quick context: A2B is a Chennai-based vegetarian restaurant, sweets and packaged-food company.
Its story began with founder K.S. Thirupathi Raja, who initially worked as a table cleaner and later learned to make sweets. After an unsuccessful attempt at farming, he opened Guru Sweets in Rajapalayam in 1960.
The family opened Sri Ananda Bhavan in Chennai’s Washermanpet in 1979. A successful second shop in Adyar eventually gave the business its current name.
For years, A2B primarily sold sweets and savouries. It entered the restaurant business in 2005, adding everyday South Indian meals to the menu.
Today, it has around 160 outlets in India and more than 30 overseas, including locations in the US, UK, Singapore, Malaysia and Australia. It employs over 15,000 people. Adyar Ananda Bhavan
The company’s revenue reportedly reached around ₹1,502 crore in FY25. A2B’s website now claims annual turnover exceeding ₹1,700 crore.
Meanwhile, Bodhi Tree Systems is an investment and business-building platform created by James Murdoch and Uday Shankar.
The why: the brand has already proved that customers want its food. But turning a family-run regional company into a global business requires a different level of management, technology and investment.
Bodhi Tree sees an opportunity to open more restaurants, expand packaged-food sales and take South Indian cuisine to a larger international audience.
A2B already operates overseas, giving it a base from which to expand instead of beginning from zero.
What happens now: Uday Shankar will become chairperson of A2B’s new board.
The partners plan to hire more professional managers, improve digital ordering and upgrade kitchens and manufacturing facilities. They also want to expand the packaged-food range and enter new markets in India and abroad.
Western India and Europe are among the markets reportedly being considered. A2B may also establish another factory to support retail sales and exports. The Economic Times
The IPO angle: A2B’s founders have said the partnership will help make the company ready for public markets.
