NEW DELHI: The suicide of V G Siddhartha, the founder of Cafe Coffee Day – India’s largest coffee shop chain – in 2019 shocked the entire nation, especially those who used to hang out at the CCD with friends and family over the weekends. The tragic death of Siddhartha, who ended his life by jumping into the Netravati river near Mangalore, shattered his wife Malavika Hegde, two sons and the entire family.
Husband’s Tragic Death
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A typewritten note that was reportedly found at the time of his death suggested that a huge debt crisis and loss of business possibly led Siddhartha to take such an extreme step. In the note, Siddhartha seemed to be apologising for “failing to create the right profitable business model.” He said that pressure from private equity partners and other lenders, and harassment from the income tax department had become unbearable. And yet Siddhartha wrote in his note: “My intention was never to cheat or mislead anybody, I have failed as an entrepreneur.”
In the wake of Siddhartha’s death, there were many who thought that the company would not survive and wondered who would now look after the company started by him. There were others who believed that V G Siddhartha’s successors would not be able to pay off the huge debt. However, Siddhartha’s wife Malavika Hegde, who was still trying to come to terms with her husband’s death, decide to take over the reins of the company and start afresh.
Taking Over As CEO
Putting to rest all speculations, Malavika took over as CEO of Coffee Day Enterprises Ltd (CDEL) in December 2020. Since that day, Malavika has worked round-the-clock to make CDEL, which once had a whopping debt of over Rs 7,000 crore, a profitable company.
Who Is Malavika Hegde?
For the unversed, Malavika is the daughter of Congress veteran and former Chief Minister of Karnataka SM Krishna. Born in 1969 in Bengaluru, she completed her schooling in the hi-tech city and later engineering at Bengaluru University. She married Siddhartha in 1991 and has two sons, Eshaan and Amartya. Even before taking over as CEO, Malavika served as a non-board member of CDEL for many years.
Malavika’s Emotional Note To CDEL Staff
Before taking over as the CEO of the CDEL, Malavika reportedly wrote a letter to the company’s 25,000 employees in which she assured them that she was committed to the future of the company and that the Coffee Day story was “worth preserving”. In her letter, she assured that she will reduce the company’s debt to a manageable level by selling a few more investments and assets.
Revival Of CCD
Malavika took over the reins of the company during the Covid-19 lockdown While trying to bring the company on track and reduce the debts to manageable levels, Malavika did not increase the price of the coffee. In her interview, she once said that the challenges increased but “somewhere along the way in the last 12 months, my mission has been to uphold the proud legacy of Siddhartha. He has left me a job to do, to settle every lender to the best of my ability, to grow the business and to enthuse and foster our employees.”
She shut down many outlets that were not making profits and withdrew hundreds of coffee vending machines installed at IT parks and companies. She also managed to bring more investors who could pump more money into the company.
Her hard work yielded positive results and the CDEL’s debt went down to Rs 3100 crore by 31 March 2020 from Rs 7200 crore in March 2019. The company’s debt further dropped to Rs 1731 crore on 31 March 2021. Under her leadership, the company today manages more than 572 outlets across the country and has around 36,000 coffee vending machines installed at various firms and companies. The company also achieved tremendous success by exporting high-quality Arabica coffee beans, which are grown on her 20,000 acres coffee plantation.
By reviving the company founded by her late husband and saving the brand of CCD, Malavika has scripted an incredible success story, which will continue to inspire millions of young Indian entrepreneurs.
