From sweet shop to a ₹3,000-crore brand: Adyar Ananda Bhavan sells majority stake to Murdoch-backed Bodhi Tree

The transaction, announced on Thursday, November 12, ranks among the significant investments in India's organised food services sector. The deal is expected to accelerate A2B's expansion across India and international markets, strengthen its packaged food business and transform the Chennai-headquartered company into a globally recognised Indian food brand.

Founded nearly five decades ago as a modest sweet shop, Adyar Ananda Bhavan has grown into a major restaurant chain with approximately 160 outlets across India and more than 30 international locations. The company employs over 15,000 people and has established a strong presence in Tamil Nadu, Karnataka and other markets through its vegetarian restaurants, sweets, savouries and packaged food products.

Its international operations extend to Singapore, the United States, Australia, Malaysia and the United Kingdom, reflecting the growing demand for authentic South Indian cuisine among Indian communities and international consumers.

The investment gives Bodhi Tree Systems majority ownership of A2B, although the exact shareholding percentage has not been disclosed. According to industry estimates reported by Reuters, the transaction values the company at approximately $350 million, or around ₹3,000 crore.

As part of the agreement, Uday Shankar, former chairman of Star India and a prominent figure in India's media and entertainment industry, will become chairperson of A2B's newly constituted board of directors. Bodhi Tree Systems was established by Shankar and James Murdoch, son of international media entrepreneur Rupert Murdoch, to invest in businesses with substantial growth potential.

The partnership will focus on modernising A2B's operations, strengthening its management capabilities, expanding manufacturing infrastructure and improving digital systems. The company also intends to broaden its portfolio of packaged foods and explore opportunities in healthier and nutritious food products.

A2B co-founder K.T. Srinivasa Raja described the investment as an important milestone in the company's journey from a family-run sweet shop to an established food services enterprise. He said the partnership would help prepare the business for public markets, indicating the possibility of a future stock market listing.

For Bodhi Tree Systems, the investment marks its entry into India's food services sector. The platform has previously invested in Allen Career Institute and JioStar, demonstrating its interest in established Indian businesses with opportunities for expansion and professionalisation.

The transaction comes at a time when traditional Indian food brands are attracting increasing attention from institutional investors. Growing demand for regional cuisines, branded sweets, packaged snacks and organised vegetarian dining has created opportunities for established family-owned businesses to expand beyond their traditional markets.

A2B's financial performance also reflects the scale it has achieved. According to regulatory disclosures cited by Reuters, Adyar Ananda Bhavan Sweets India Private Limited reported revenue of approximately ₹1,487 crore and a net profit of around ₹36.2 crore for the financial year ending March 2025.

The investment is particularly significant for Tamil Nadu's food industry, where several successful restaurant and sweets businesses have traditionally remained under family ownership. A2B's decision to bring in an international investment partner could become an important example of how established regional food brands can attract institutional capital while expanding their reach.

For customers familiar with A2B's idlis, dosas, traditional sweets and savouries, the transaction signals a new phase in the brand's evolution. What began as a neighbourhood sweet shop has now become a business attracting global investment, with ambitions to take South Indian vegetarian cuisine to a much wider international audience.