Murdoch, Shankar firm to take majority stake in south Indian food chain for $180 million

Investment firm Bodhi Tree has agreed to invest $180 ​million for a majority stake in popular south ​Indian food chain Adyar Ananda Bhavan (A2B), its first ‌bet ​on the food sector, the companies said in a joint statement.

Bodhi Tree is led by media veterans James Murdoch, the younger son of media mogul Rupert Murdoch, and Uday ‌Shankar, a top executive of the Reliance-Disney India joint venture. The 50-year-old south Indian food chain serves south Indian vegetarian dishes and sweets and has 160 domestic and over 30 global outlets. The deal is the latest bet by global investors on legacy Indian food ‌businesses as demand for Indian snacks and cuisine grows overseas. Singapore's Temasek bought a stake in the snacks business of ‌India's Haldiram's last year at a valuation of around $10 billion.

India's restaurant market has for years attracted large foreign brands like Domino's but outlets selling local cuisines still dominate the sector. South Indian cuisine is hugely popular the world over for its flat rice-and-lentil crepes called dosas and steamed rice cakes ⁠called idlis. The ​joint statement cited a $180 million ⁠stake for majority ownership of A2B, but did not share the exact percentage of shareholding. An industry source, however, said the deal values A2B at ⁠roughly $350 million.

The registered entity in India, Adyar Ananda Bhavan Sweets India Private Limited, reported sales of 14.87 billion indian rupees ($158.8 million) in the ​year to March 2025, with net profit of 362 million rupees ($3.9 million), according to regulatory disclosures. Murdoch and Shankar said ⁠they aim to "build a differentiated, professionally managed Indian food company ... We look forward to working with the team to take its authentic cuisine to a far broader ⁠global ​audience."

Brothers K.T. Srinivasa Raja and K.T. Venkatesan co-founded A2B, which began as a sweet shop. It currently has 15,000 employees, with international outlets in Singapore, the United States, Australia, Malaysia, and Britain. Raja said in the joint statement that the ⁠Bodhi Tree deal would make A2B "a company fit for the public markets," signaling plans for an eventual stock market listing, though ⁠the statement gave no timeline ⁠or other details.

Media veteran Shankar will serve as chairperson of A2B’s new board, the statement said. Bodhi Tree has in the past invested in an Indian test-preparation firm, ALLEN Career Institute, ‌and JioStar, the joint ‌venture of India's Reliance and Walt Disney.