Bodhi Tree Systems, an investment platform backed by James Murdoch’s Lupa Systems and media executive Uday Shankar, plans to invest $180 million to acquire a majority stake in South Indian food chain Adyar Ananda Bhavan (A2B). The proposed investment is expected to support the restaurant chain’s next phase of growth as it expands its footprint across India and strengthens its presence in international markets.
The partnership is intended to help A2B consolidate its position in the food and restaurant industry while building on its presence in South Indian cuisine and packaged sweets and savouries. A2B has a significant presence in the South Indian casual dining segment, particularly in Tamil Nadu and Karnataka. It currently operates around 160 outlets across India and more than 30 international outlets, with overseas operations in Singapore, the United States, Australia, Malaysia and the United Kingdom. The chain employs more than 15,000 people and has built its business around South Indian vegetarian cuisine and a range of packaged traditional sweets and savoury products.
The proposed investment is expected to give the company financial and strategic support to accelerate its expansion plans and strengthen its operating capabilities.
Uday Shankar to chair new board
As part of the proposed partnership, Uday Shankar will take over as chairperson of A2B’s new board. The appointment is expected to bring strategic leadership and investment expertise to the restaurant business as it prepares for its next stage of expansion.
In a statement, James Murdoch and Uday Shankar said A2B has earned the trust of millions of families through consistent and reliable quality. They said they were grateful to co-founders K.T. Srinivasa Raja and K.T. Venkatesan for the opportunity to partner with them to build a differentiated, professionally managed Indian food company that sets new standards for the sector. While A2B is a formidable brand in India, they said they were equally impressed by the scale and reach of its operations in Singapore, the United States, Australia, Malaysia and the UK. They added that they look forward to working with the team to take its authentic cuisine to a far broader global audience.
Founders point to public-market plan
A2B co-founder K.T. Srinivasa Raja said the business began as a sweet shop opened by him and his brother 50 years ago and is now part of daily life for millions of families. He said he was proud of every person who made that possible. Raja added that the company was excited to begin its next chapter with Bodhi Tree, saying the plan the two sides have built together will make A2B a company fit for the public markets so that customers, employees and investors can share in its future.
Investor’s portfolio
Bodhi Tree Systems focuses on investments in media, consumer technology, education and healthcare across emerging markets, particularly India and Southeast Asia. The investment in A2B marks its entry into a major food and restaurant business, broadening its portfolio beyond existing investments in media and education. Before the proposed A2B deal, Bodhi Tree had invested around ₹13,500 crore in Viacom18 and $600 million in Allen Career Institute. Its investment strategy has focused on identifying businesses with growth potential in large and expanding consumer markets. The latest deal reflects an extension of that strategy into food services and restaurants, where established brands have opportunities to scale through wider geographical reach and stronger operating capabilities.
National and global expansion
The proposed majority stake acquisition comes as organised food services businesses seek to expand through established regional brands and growing consumer demand. For A2B, the partnership with Bodhi Tree Systems could provide an opportunity to strengthen its position beyond its traditional South Indian markets and accelerate expansion in other parts of India. Its existing international presence also provides a platform for further growth in overseas markets. The $180 million investment marks a significant development for the food chain as it looks to transform its established regional brand into a larger national and international restaurant business.