Bodhi Tree Systems, the investment firm spearheaded by media executives James Murdoch and Uday Shankar, has agreed to invest $180 million to acquire a majority stake in Adyar Ananda Bhavan (A2B), a prominent South Indian vegetarian restaurant and sweets chain. This strategic move, announced on November 12, marks Bodhi Tree's entry into India’s vibrant food services sector and aims to elevate A2B into a globally recognized Indian food brand.
While the exact percentage of the stake being acquired has not been publicly disclosed, industry sources cited by Reuters estimate A2B’s overall valuation at approximately $350 million. This significant investment underscores a growing trend of investor interest in India's established traditional food businesses.
About Adyar Ananda Bhavan (A2B)
Founded by brothers K.T. Srinivasa Raja and K.T. Venkatesan, A2B began its journey as a sweet shop before gradually expanding its offerings to include a wide range of South Indian vegetarian meals, sweets, and savories. The company currently operates around 160 outlets across India and more than 30 international locations, with a presence in Singapore, the United States, Australia, Malaysia, and the United Kingdom. A2B employs over 15,000 people and maintains a particularly strong foothold in the Indian states of Tamil Nadu and Karnataka.
Global Expansion and Modernization Plans
The partnership between Bodhi Tree and A2B will primarily focus on accelerating the expansion of A2B’s domestic and international operations, while simultaneously strengthening its packaged-food business segment. Future plans include substantial investments in leadership development and talent acquisition, enhancing digital capabilities, and modernizing kitchen and manufacturing facilities to align with global standards. The company also intends to broaden its range of healthy and nutritious food products to cater to evolving consumer preferences.
Potential Stock Market Listing for A2B
Beyond operational expansion, the investment could also help prepare A2B for a potential stock market listing. Co-founder K.T. Srinivasa Raja expressed that the partnership would support the company in becoming ready for public markets, enabling customers, employees, and investors to participate in its future growth. However, no specific timeline for a potential listing has been announced.
Bodhi Tree's Investment Strategy
Backed by James Murdoch’s Lupa Systems and Uday Shankar, Bodhi Tree Systems has a diverse investment portfolio that includes ventures such as ALLEN Career Institute and JioStar, the media and entertainment joint venture between Reliance and Disney. The A2B transaction represents Bodhi Tree's inaugural investment in the food sector, reflecting its strategic interest in established consumer businesses that demonstrate significant growth potential.
“This deal comes amid rising investor interest in India’s traditional food brands. In 2025, Singapore-based Temasek acquired a stake in Haldiram’s snacks business in a transaction that valued the business at around $10 billion.”