The iconic Cafe Coffee Day or popularly called CCD faced a major setback and was almost out of business when the owner VG Sidhhartha passed away in July 2019. The man who had popularised the Cafe culture with the country’s largest coffee shop chain had committed suicide by jumping off the Netravati river.
CCD was a one stop destination for coffee and conversations – from hanging out with friends, to first dates, meeting with colleagues or relatives, it was more than just a coffee shop and knowingly or unknowingly brought people together.
Malavika Hegde, wife of VG Sidhhartha, took helm of the dying business and brought it back to life. A single mother of two and being under a lot of public speculation, Malavika’s vision and determination has saved CCD from dying.
Who is Malavika Hegde?
Malavika Hegde was born in 1996, in Bengaluru and is the daughter of former Karnataka Chief Minister, SM Krishna. After finishing her graduation from Bengaluru University with a degree in engineering she wedded Siddhartha and was involved in the CDEL business for a long time before taking over as the CEO officially.
Rebirth of Cafe Coffee Day
In December 2020, she took over as CEO of Coffee Day Enterprises Ltd (CDEL). Her hard work and determination and love for the company helped the company stand on its own again. She reportedly penned a note for her employees assuring them to In 2019, CCD had a debt of over Rs 7,000 crore which was a massive load that Malavika had to take off of her shoulder. According to a note by Siddhartha, report by ANI, the company was facing pressure from private equity partners and other lenders, and harassment from the income tax department which was caused a lot of stress.
After the pandemic hit, Malavika was still headstrong on clearing the company’s debt. As per India Times report on CDEL’s statement in August 2021, the team at CDEL was working bring back the firm on track after “substantial” debt reductions. According to its annual report its net debt was Rs 1,731 crore as of March 31, 2021. The report read, “The total loan funds stood at Rs 1,779 crore which comprises long-term borrowings of Rs 1,263 crore and short-term borrowings of Rs 516 crore.”
As per CDEL’s annual report the debt was reduced to Rs 3,100 crore as of March 31, 2020, from Rs 7,200 crore in March 2019, without a cut from lenders.
CCD under the guidance of Malavika continues to be a cult favourite and that one place you can never say no to. With over 1200 stores and online service, it is growing and all thanks to the woman who made it possible.
