A2B secures $180 million investment from James Murdoch, Uday Shankar-backed Bodhi Tree

Vishnu Shankar, from the A2B promoter family, said that the funds would be utilised for expanding into newer markets both nationally and internationally.

Homegrown food chain Adyar Ananda Bhavan, popularly known as A2B, has secured investments to the tune $180 million (over ₹1,600 crore) from Bodhi Tree Systems, a firm co-founded by James Murdoch, the younger son of media baron Rupert Murdoch, and Uday Shankar.

The 50-year-old brand has shed a majority stake for this deal. An industry source said that the deal values A2B at roughly $350 million. And from now, Uday Shankar will serve as Chairperson of A2B’s new Board of Directors. Veda Corporate Advisors acted as the exclusive financial advisor to A2B.

Vishnu Shankar, from the A2B promoter family, confirmed the news and told The Hindu that the funds would be utilised for expanding into newer markets both nationally and internationally. Currently, the food chain serves south Indian vegetarian dishes and ​sweets. Mr. Shankar said that the western region of India and the European market are among the key markets the company is looking to tap. “We also want to expand our retail presence. And for this, we will be modernising our factories in Chennai and Bengaluru. We are also exploring the possibility of setting up another factory to cater to the retail and export markets,” Mr. Shankar said.

Founded in the late 1970s by K.T. Venkatesan and K.T. Srinivasa Raja from Rajapalayam, A2B has a strong foothold in Tamil Nadu and Karnataka and a growing presence across India. It runs about 160 restaurants and sweet-and-savoury stores in India, with 32 overseas outlets in markets like Singapore, the United States and Australia. It also sells packaged sweets and snacks through retail and online channels. The company is headquartered in Chennai and employs more than 15,000 people. A2B is Bodhi Tree’s third investment, after ALLEN Career Institute and JioStar.

Balachandar R., Director of Junior Kuppanna, said: “There is treasure trove of value creation in PE equity & capital markets for regional legacy brands. Haldiram and A2B has only scratched the surface. I foresee at least 100 listed brands in F&B and food space in the next decade.” It maybe recalled that Mr. Balachandar was the advisor to the Dindigul Thalappakatti deal which happened in 2019. The hotel chain which is famous for its biryani had raised ₹260 crore from CX Partners, a private equity firm.