Malavika Hegde assumed leadership of Coffee Day Enterprises Ltd (CDEL) in December 2020. Her dedication, tenacity, and love for the business made it possible for it to once again stand on its own.
When owner VG Sidhhartha passed away in July 2019, the renowned Cafe Coffee Day, or CCD as it is more often known, suffered a serious setback and was on the verge of going out of business. The guy who established the greatest chain of coffee shops in the nation and helped popularize the cafe culture committed himself by jumping into the Netravati River.
CCD was more than just a coffee shop; it was a one-stop location for coffee and chats. Whether on dates or just hanging out with pals, CCD was more than just a meeting place for coffee and conversations.
Malavika Hegde, VG Sidhhartha’s wife, assumed control of the failing company and revived it. Malavika, a single mother of two, has been the subject of much public conjecture, yet her foresight and tenacity have prevented CCD from perishing.
Malavika Hegde: Who is she?
Malavika Hegde, the daughter of former chief minister of Karnataka SM Krishna, was born in Bengaluru in 1996. After earning her engineering degree from Bengaluru University, she married Siddhartha and worked at the CDEL company for a while before officially taking over as CEO.
A new Era of Cafe Coffee Day
The amount owed by CCD in 2019 was above Rs 7,000 crore, which Malavika had to relieve herself of. The company was under stress due to pressure from private equity partners, other lenders, and harassment from the income tax department, according to a memo by Siddhartha, reported by ANI She will take over as CEO of Coffee Day Enterprises Ltd (CDEL) in December 2020.
Her dedication, determination, and passion for the enterprise enabled the company to regain its independence. She allegedly wrote a memo to her employees telling them that CCD had a debt of more than Rs 7,000 crore in 2019, which Malavika had to shoulder. According to a note by Siddhartha, as reported by ANI, the company was under pressure from private equity partners and other lenders, as well as harassment from the income tax department, which caused a great deal of stress.
Malavika was adamant about paying off the company’s debt even after the pandemic struck. According to an India Times report on CDEL’s statement in August 2021, the CDEL team was working to get the company back on track after “substantial” debt reductions. According to its annual report, its net debt as of March 31, 2021 was Rs 1,731 crore. “The total loan funds stood at Rs 1,779 crore, comprising long-term borrowings of Rs 1,263 crore and short-term borrowings of Rs 516 crore,” according to the report.
According to CDEL’s annual report, the debt was reduced to Rs 3,100 crore as of March 31, 2020, down from Rs 7,200 crore in March 2019.
CCD, led by Malavika, remains a cult favorite and that one place you can never say no to. It is expanding, thanks to the woman who made it possible, with over 1200 stores and online service.