Adyar Ananda Bhavan Sells Majority Stake to Bodhi Tree for $180 Million

Adyar Ananda Bhavan, the Chennai-based sweets and snacks chain known as A2B, has sold a majority stake to Bodhi Tree Systems for $180 million, more than Rs 1,600 crore, the companies announced on Thursday, 12 November. Bodhi Tree is the investment platform set up by James Murdoch and former Star India head Uday Shankar. The exact stake was not disclosed, and Shankar will chair A2B’s new board, Business Standard and The News Minute reported.

Money for New Cities, Kitchens and Stores

According to The News Minute, the funds will go into entering new markets in India and abroad, including western India and Europe, expanding retail, and modernising factories in Chennai and Bengaluru. A third facility is also being considered. A2B co-founder K T Venkatesan said the plan is meant to make the company “fit for the public markets”, Business Standard reported, so a stock market listing is part of the thinking.

For customers, that means more A2B outlets in cities where the brand is thin today. A2B has about 160 outlets in India and more than 30 overseas, in Singapore, the United States, Australia, Malaysia and the United Kingdom. It employs more than 15,000 people.

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From a Washermanpet Sweet Shop to a $350 Million Valuation

K T Srinivasa Raja and K T Venkatesan started the business in Chennai in the late 1970s, beginning with a sweet shop in Washermanpet. Raja said he and his brother opened the first shop about 50 years ago. An industry source cited by The Hindu put the valuation at about $350 million.

Talks had been reported in July. Venture Intelligence, citing Mint, said on 16 July that Bodhi Tree was negotiating a deal at a valuation of Rs 3,000 crore to Rs 3,500 crore. Bodhi Tree was founded in 2021. Its earlier bets were a 36 per cent stake in Allen Career Institute for $600 million in 2022 and an investment in JioStar. A2B is its third.

Listing Is the Stated Goal

Neither side has given a timeline for an initial public offering, and the stake percentage and regulatory approvals, if any are needed, have not been announced. Murdoch and Shankar said A2B had earned “strong consumer trust” over the years. More business deals are on the IPB News Economy page.

Source: Based on reporting by Business Standard, The News Minute and Venture Intelligence.

Image: Company website.