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Wednesday, March 29, 2023

Grit-filled story of CEO Malavika Hegde who helped Café Coffee Day stay alive even after her husband died

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The story of Malavika Hegde, the CEO of Café Coffee Day is full of grit and determination. She helped the business survive even after her husband had died.

Remember the surprising news in 2019 about V G Siddhartha, the founder of India’s largest coffee shop chain, Cafe Coffee Day?

Malavika Hedge, Siddhartha’s wife, was appointed CEO of Coffee Day Enterprises Ltd (CDEL), the owner of the Café Coffee Day chain, in December 2020.

The odds were stacked against her. Nonetheless, she has written a fantastic success tale.

The unexpected suicide of V G Siddhartha- the beginning of CDEL’s problems V G Siddhartha’s suicide had also brought to light CDEL’s concerns.

The CDEL founder had requested that his driver take him to a bridge near Mangaluru.

He was never seen again, and his body was discovered later.  ANI released a typewritten letter.

Siddhartha seems to be apologising in the note for “failing to build the correct successful business model.”

He claimed that the pressure from private equity partners and other lenders, as well as harassment from the IRS, had grown untenable. This put CDEL, the owner of India’s largest coffee shop network, in jeopardy. People all throughout the country were taken aback by this.

After all, Café Coffee Day is more than just a coffee shop; it’s also a component of popular urban culture. CCD owns 572 cafés in 165 locations across the country, as well as 333 CCD Value Express kiosks.

Malavika Hegde, V G Siddhartha’s wife, took over as CDEL’s Chief Executive Officer (CEO) in December 2020.

Hegde made a bold move in this regard. As of March 31, 2019, CDEL owed Rs 7,000 crore.

There was certainly a pile of debt for Hegde to deal with. But Hegde, a devastated woman, chose to confront her troubles rather than going abroad.

Malavika Hegde faced a variety of problems as CEO of CDEL. She needed to lower the company’s debt in order to preserve her husband’s vision.  She also needed to keep the company running because the livelihoods of thousands of employees were on the line.

But, Malavika Hegde laid the groundwork for CDEL’s extraordinary recovery. Hegde has not only demonstrated guts, but she has also demonstrated her talents and competence as a CEO.

CDEL announced in August of last year that it had cut debt “substantially” and that management was working to get the company back on track. CDEL’s net debt was Rs 1,731 crore as of March 31, 2021, according to its annual report. This marked a significant improvement in CDEL’s financial condition.

In fiscal 2020, the company’s debt was at Rs 2,909.95 crore.  However, it has already drastically reduced its debt burden and is on course to be back on track very soon.

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