• Wed. Dec 6th, 2023

CEO Malvika Hegde saves 150-year-old cafe Coffee Day from closure

CEO Malvika Hegde saves 150-year-old cafe Coffee Day from closure

The cafe popularly known as Coffee Day or CCD suffered a major setback when owner VG Siddhartha passed away in July 2019. Outside the Netravati river.

CCD was a one-stop destination for coffee and conversations – from hanging out with friends, to first dates, to meeting colleagues or relatives, it was more than just a coffee shop, it brought people together knowingly or unknowingly.

VG Siddhartha’s wife Malavika Hegde took the helm of the moribund business and brought it back to life. CCD was saved from death by the vision and determination of Malavika, a single mother of two and the subject of much public speculation.

Who is Malvika Hegde?

Born in Bengaluru in 1996, Malavika Hegde is the daughter of former Karnataka Chief Minister SM Krishna. After graduating in engineering from Bengaluru University, she married Siddhartha and was involved in the CDEL business for a long time before officially taking over as CEO.

The rebirth of Cafe Coffee Day

In December 2020, she took over as the CEO of Coffee Day Enterprises Ltd. (CDEL). Her hard work, determination and love for the company helped the company stand on its own again. She reportedly wrote a note to her staff assuring them that the CCD had a debt of over Rs 7,000 crore in 2019, which was a huge burden to take off Malavika’s shoulders. Siddhartha’s note, reported by ANI, said the company faced pressure from private equity partners and other lenders and harassment from the Income Tax department.

Even after the pandemic hit, Malvika bent over backwards to clear the company’s debt. According to an India Times report on CDEL’s statement in August 2021, the team at CDEL was working to get the firm back on track after “significant” debt reduction. According to its annual report, its net debt stood at Rs 1,731 crore as on March 31, 2021. The report reads, “Total loan funds were Rs 1,779 crore, comprising long-term loans of Rs 1,263 crore and short-term loans of Rs. 516 crores.

According to CDEL’s annual report, debt has declined from Rs 7,200 crore in March 2019 to Rs 3,100 crore as of March 31, 2020, without any cuts from lenders.

CCD under the guidance of Malvika remains a cult hit that you can never say no to. With over 1200 stores and an online service, it’s growing, thanks to the woman who made it happen.

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