A2B sells majority stake to Bodhi Tree for $180 million
The Chennai-based food chain will use the investment to expand into international markets including Europe and Western India.
Chennai-based food chain Adyar Ananda Bhavan (A2B) has sold a majority stake to Bodhi Tree Systems for $180 million, according to reports from The Hindu, The New Indian Express and Business Standard. Bodhi Tree Systems was co-founded by James Murdoch and Uday Shankar.
The investment values A2B at approximately $350 million. Uday Shankar will serve as the chairperson of the company's new board of directors. This marks Bodhi Tree's third investment, following ALLEN Career Institute and JioStar.
A2B co-founder K T Srinivasa Raja said the partnership aims to make the company fit for public markets. Co-founder K T Venkatesan added that the partnership would help take the brand into more homes.
The company plans to use the funds to expand into new national and international markets, including Western India and Europe. Vishnu Shankar, from the A2B promoter family, said the company also intends to modernise factories in Chennai and Bengaluru and explore setting up another factory for retail and export.
A2B currently operates about 160 restaurants and stores in India and more than 30 outlets abroad in locations such as Singapore, the U.S., Australia, Malaysia, Sri Lanka and the UK. The brand employs more than 15,000 people.