Chennai-headquartered sweets and savouries brand Adyar Ananda Bhavan, known as A2B, announced on Thursday, November 12, that Bodhi Tree Systems will invest $180 million in the company for a majority stake. The Hindu BusinessLine described the transaction as one of the largest deals in the Indian food services landscape.

Source: The Hindu BusinessLine (Nov 12)

Bodhi Tree Systems is the strategic investment and operating platform founded by James Murdoch and Uday Shankar. Following the transaction, Uday Shankar will serve as Chairperson of A2B's new Board of Directors, and Veda Corporate Advisors acted as the exclusive financial advisor to A2B for the transaction.

Source: The Hindu BusinessLine (Nov 12)

A2B runs more than 160 outlets in India, predominantly in Tamil Nadu and Karnataka, and over 30 outlets abroad across Malaysia, the United States, Australia, Canada, the United Kingdom and Singapore, employing more than 15,000 people in total. The chain opened its first outlet in Chennai in 1979, selling sweets and savouries, and grew by combining its vegetarian restaurant business with sweets and savouries retail.

Source: YourStory (Nov 13)

The two companies said the partnership will focus on strengthening A2B's leadership and talent, building digital capability, modernising its kitchens and manufacturing to meet global standards, expanding its range of healthy and nutritious food, and growing its restaurants and packaged foods across India and in global markets. In a joint statement, Bodhi Tree co-founders James Murdoch and Uday Shankar said A2B had earned the trust of millions of families through its consistent and reliable quality, and that they looked forward to taking its cuisine to a far broader global audience.

Source: The Hindu BusinessLine (Nov 12)

A2B co-founder K.T. Srinivasa Raja said what began as a sweet shop started by his brother and him 50 years ago is now part of daily life for millions of families, and that the team will now work to make A2B a company fit for the public markets. People familiar with the matter told BusinessLine that expanding globally, going deeper into existing markets and growing the snacks business are among the key priorities, ahead of a possible public listing in a few years.

Source: The Hindu BusinessLine (Nov 12)

The exact percentage of the stake acquired has not been disclosed in the joint statement. Industry reports cited by Reuters put the transaction's valuation of A2B at approximately $350 million (around Rs 3,000 crore). A2B is Bodhi Tree's third investment in India, after ALLEN Career Institute and JioStar.