Bodhi Tree Systems to acquire majority stake in Chennai restaurant chain A2B for $180 million

Bodhi Tree Systems will acquire a majority stake in Chennai-based restaurant chain A2B (Adyar Ananda Bhavan) in a $180 million deal announced on November 12.

Bodhi Tree is an investment platform backed by James Murdoch’s Lupa Systems and Uday Shankar.

Following the transaction, Shankar, who co-founded Bodhi Tree, will become chairman of A2B’s board.

A2B began nearly five decades ago as a sweet shop and has grown into a food services business. Its operations span restaurants, sweets, savouries and packaged food products.

The company runs around 160 outlets in India and more than 30 locations overseas, and employs more than 15,000 people. It has a strong presence in Tamil Nadu and Karnataka, and operates abroad in Singapore, the US, Australia, Malaysia and the UK.

The partnership will focus on expanding A2B across India and international markets, and on investments in technology, operational efficiencies and business capabilities.

It also aims to strengthen A2B’s management team and prepare the company for a potential public listing. Murdoch and Shankar cited A2B’s brand recognition, consumer trust and international presence as the key factors behind the investment.

A2B co-founder K T Srinivasa Raja, who started the business with his brother as a sweet shop 50 years ago, said it has become a part of everyday life for millions of families. He added that the partnership with Bodhi Tree would provide the resources and capabilities needed to support the company’s next phase of growth.