Bodhi Tree to invest $180 million for a majority stake in Adyar Ananda Bhavan

CHENNAI: In one of the largest deals in the Indian restaurant sector, Bodhi Tree System (BTS) announced a $180 million investment for an undisclosed majority stake in leading south-based vegetarian restaurant chain Adyar Ananda Bhavan (A2B).The investment by BTS, an investor-operator platform co-founded by media veterans James Murdoch and Uday Shankar, is aimed at expanding the footprint of the Chennai-based brand in domestic and international markets, according to a statement.At present, A2B operates 160 outlets, largely in southern states such as Tamil Nadu, Karnataka and Andhra Pradesh, and Puducherry, and 30 outlets globally, including in Singapore, the US, Australia and Malaysia.Uday Shankar will serve as chairperson of A2B’s new board of directors. Industry sources said discussions over the tie-up had been going on for more than a year. “It is a joint venture between the two companies, wherein A2B co-founders and brothers K T Srinivasa Raja and K T Venkatesan will offer their guidance. The duo has a significant say in this partnership,” a source familiar with the developments said.The deal is expected to strengthen A2B’s leadership and talent pool, build digital capabilities, modernise its kitchens, bring manufacturing up to global standards, expand its range of healthy and nutritious food, and grow its restaurant and packaged-food businesses across India and international markets.Veda Corporate Advisors was the exclusive financial adviser to A2B.James Murdoch and Uday Shankar said A2B was a formidable brand in India and that they looked forward to working with the team to take its authentic cuisine to a far broader global audience. A2B’s co-founders said the plan they had built together would make A2B a company fit for the public markets, allowing customers, employees and investors to share in its future.A2B has operated under several names over the years and traces its roots to Rajapalayam in Virudhunagar district. The founders’ father, K S Thirupathi Raja, started a small sweet stall named Sri Guru Sweets in Rajapalayam in the 1960s. He later moved to Bengaluru in 1975, where he operated a sweet stall under the name Sri Srinivasa Sweets. Thirupathi Raja returned to Tamil Nadu to launch Sri Ananda Bhavan Sweets in Washermenpet, north Chennai, in 1980. However, the name changed to Adyar Ananda Bhavan when the business reached the Adyar locality in the late 1980s.From sweets and savouries to chaats and snacks, the premium eatery went on to introduce multi-cuisine dishes on its menu. In 2000, it ventured into the restaurant segment and launched its first restaurant under the A2B brand in Puducherry in 2004.