Adyar Ananda Bhavan began 50 years ago as a small sweet shop. It is now preparing for a global future, and a possible stock market listing, with new backers.
Bodhi Tree Systems has invested $180 million for a majority stake in the South Indian food chain, better known as A2B. Bodhi Tree is the investment platform run by James Murdoch’s Lupa Systems and media veteran Uday Shankar. The aim is to turn A2B into a global champion of Indian ethnic food. Uday Shankar will chair A2B’s new board of directors.
Brothers K.T. Srinivasa Raja and K.T. Venkatesan founded A2B. It is now one of South India’s best-known food brands, strongest in Tamil Nadu and Karnataka and growing across the country. The company runs 160 outlets in India and more than 30 abroad, and employs over 15,000 people. It runs casual-dining restaurants and sells packaged South Indian sweets and savouries. It also operates in Singapore, the United States, Australia, Malaysia and the UK.
With the new money, A2B plans to strengthen its leadership team, build its digital capabilities and upgrade its kitchens and factories to global standards. It also plans to launch more healthy and nutritious food products and to grow its restaurant and packaged-food businesses in India and abroad.
Murdoch and Shankar said A2B has won the trust of millions of families with food that is consistently good. They want to build a professionally managed Indian food company that sets new standards for the industry. They also said the size of A2B’s overseas operations impressed them. They hope to take its traditional food to a much wider audience around the world.
For the founders, the deal starts a new chapter. “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 Srinivasa Raja. He said the plan built with Bodhi Tree will make A2B ready to list on the stock market, so customers, employees and investors can share in its future.
Venkatesan said the deal brings together A2B’s well-known brand and day-to-day experience with Bodhi Tree’s record of building large consumer businesses. He said the partners hope to create new opportunities for staff and take A2B into many more homes.
A2B is Bodhi Tree’s third investment, after ALLEN Career Institute and JioStar. The platform backs businesses it believes create lasting social value. It focuses on established consumer companies that are about to enter their next big phase of growth.
Veda Corporate Advisors was A2B’s only financial adviser on the deal, and Khaitan & Co was its legal adviser. On Bodhi Tree’s side, Ernst & Young checked the finances and taxes, Alvarez & Marsal reviewed the business, Trilegal gave legal advice, and Moelis & Company advised on the transaction.
For millions of South Indian families, A2B has long been the place for filter coffee, dosas and festival sweets. Its new owners now want to bring that food to many more people in India and abroad.