A2B sells majority stake to Bodhi Tree Systems for $180 million
The Chennai-based food chain aims to expand its presence in India and international markets through the strategic partnership.
Chennai-based food chain Adyar Ananda Bhavan (A2B) has sold a majority stake to Bodhi Tree Systems for $180 million, according to reports by The Hindu, Moneycontrol and Business Standard. Bodhi Tree Systems is an investment platform co-founded by James Murdoch and Uday Shankar.
The deal values A2B at approximately $350 million, an industry source told The Hindu. Uday Shankar will serve as the chairperson of the new Board of Directors for A2B. This marks the third investment for Bodhi Tree Systems, following its stakes in ALLEN Career Institute and JioStar.
A2B, which has been operating for 50 years, currently runs about 160 restaurants and stores in India and over 30 outlets internationally in markets including Singapore, the US, Australia, Malaysia and the UK. The company employs more than 15,000 people.
Vishnu Shankar, from the A2B promoter family, said the funds would be used to expand into new national and international markets, specifically mentioning western India and Europe. He added that the company plans to modernise factories in Chennai and Bengaluru and may set up another factory for retail and export.
Co-founder K T Srinivasa Raja said the plan built with Bodhi Tree will make A2B a company fit for public markets. Co-founder K T Venkatesan said the partnership aims to create new opportunities for their people and take the brand into more homes.
Murdoch and Shankar said the brand has earned the trust of millions of families and they look forward to taking its cuisine to a broader global audience.