Chennai-based Adyar Ananda Bhavan (A2B), one of South India’s most recognised vegetarian food brands, has entered a significant new phase of growth after investment platform Bodhi Tree Systems agreed to acquire a majority stake in the company for $180 million (over ₹1,600 crore). The investment is expected to strengthen A2B’s presence across India and overseas, while transforming the nearly five-decade-old family business into a professionally managed global food company.
The transaction, announced on November 12, marks an important investment in India’s food services sector. Bodhi Tree Systems is co-founded by James Murdoch, son of media tycoon Rupert Murdoch, and Uday Shankar, former president of The Walt Disney Company Asia Pacific and a prominent media executive. The investment platform will partner with A2B’s promoters to expand the restaurant chain and its packaged food operations.
The transaction reportedly values A2B at approximately $350 million (around ₹3,100 crore), although the exact percentage of ownership acquired by Bodhi Tree has not been publicly disclosed. Uday Shankar will take over as chairperson of A2B’s newly constituted board of directors.
For A2B, the investment represents more than a change in ownership. It provides financial backing and strategic expertise to take an established regional food brand into new markets, improve its operational capabilities and strengthen its position in the competitive Indian food and beverage industry.
Founded by brothers K.T. Srinivasa Raja and K.T. Venkatesan, A2B has grown from a modest sweet shop into a large restaurant and packaged food business. Over the years, the company has built a strong following for its traditional South Indian vegetarian dishes, sweets, savouries and snacks. Its familiarity among consumers, particularly in Tamil Nadu and Karnataka, has helped it become a recognised name among Indian food brands.
The company currently operates around 160 outlets across India and more than 30 international outlets. Its overseas operations extend to markets including Singapore, the United States, Australia, Malaysia and the United Kingdom. A2B employs more than 15,000 people across its business operations.
The expansion plan will focus on strengthening the company’s presence in both existing and emerging markets. Within India, A2B is looking to expand beyond its traditional southern strongholds, with western India emerging as an important growth destination. Internationally, the company is exploring opportunities to increase its reach, including a possible expansion into Europe.
The partnership also intends to take A2B beyond its restaurant network and build a stronger packaged food business. Its portfolio of South Indian sweets, savouries and snacks offers an opportunity to reach consumers through retail outlets, supermarkets and online platforms. Strengthening this segment could help the company establish a wider distribution network and generate business beyond its physical restaurants.
A major part of the proposed expansion will involve modernising A2B’s manufacturing infrastructure. The company plans to upgrade its existing factories in Chennai and Bengaluru to improve production capacity and support the growing demand for its packaged products. It is also considering setting up an additional manufacturing facility to cater to retail and export markets.
Improving manufacturing and supply-chain capabilities will be important as the company increases its geographical footprint. Maintaining consistent food quality, hygiene and freshness across a larger network will be one of the key challenges. Investments in modern kitchens, production systems and technology are expected to help A2B manage these requirements more efficiently.
The partnership will also focus on strengthening the company’s leadership team, attracting talent and developing its digital capabilities. Technology-driven improvements in business operations, distribution and customer engagement are expected to support the next stage of growth. A2B also plans to widen its range of healthy and nutritious food offerings to respond to changing consumer preferences.
The founders see the partnership as an opportunity to take the company towards the next level of business development. K.T. Srinivasa Raja and K.T. Venkatesan have indicated that their ambition is to build A2B into a professionally managed company capable of meeting public-market expectations. While the partnership points towards a possible stock market listing in the future, no specific timeline has been announced.
The company’s financial performance provides an indication of the scale of its existing operations. According to regulatory disclosures cited in reports, Adyar Ananda Bhavan Sweets India Private Limited recorded revenue of ₹14,870 million (approximately ₹1,487 crore) in the financial year ended March 2025. Its net profit stood at ₹362 million (approximately ₹36.2 crore) during the same period.
For Bodhi Tree Systems, the A2B transaction is its third major investment. The platform previously invested $600 million in Allen Career Institute in 2022, acquiring a 36% stake, and subsequently became a strategic investor in JioStar in 2023. Its latest investment marks an entry into India’s food services industry, adding an established consumer brand to its portfolio.
The deal also reflects growing investor interest in India’s regional food and beverage companies. Established brands with loyal customers, strong distribution networks and recognised products are increasingly attracting private equity investment. As Indian cuisine gains popularity in international markets, traditional food businesses are also finding opportunities to expand beyond their original geographical markets.
The growing international demand for Indian snacks, vegetarian meals and traditional sweets has created opportunities for companies such as A2B. However, expanding overseas will require more than opening additional restaurants. Consistent product standards, efficient manufacturing, supply-chain management and an understanding of local consumer preferences will play an important role in determining the success of its international operations.
Veda Corporate Advisors acted as the exclusive financial adviser to A2B. Khaitan & Co served as its legal adviser. Bodhi Tree received financial and tax due diligence support from Ernst & Young, while Alvarez & Marsal undertook commercial due diligence. Trilegal acted as its legal adviser and Moelis & Company as transaction adviser.
From its beginnings as a sweet shop to a business operating nearly 200 outlets across domestic and international markets, A2B has built its growth around traditional Indian food and consumer familiarity. The $180 million investment now gives the company an opportunity to compete on a much larger scale. Its ability to preserve the qualities that made it popular while adopting modern business practices will determine how successfully it can turn into a global Indian food brand.