Malvika Hegde, the current CEO of Cafe Coffee Day Enterprises Ltd (CDEL) has broken the internet with her success story. Most of you would have heard the shocking demise of VG Siddhartha, the former CEO of the popular Cafe Coffee Day. However, very few know about the huge debts the coffee giant was suffering until its owner VG Siddhartha took his own life.
After the death of the owner, many thought that the company can hardly survive the huge loss. But, to put an end to all of these rumours, Siddhartha’s wife, Malvika Hegde, took over the firm at a critical moment and wrote an extraordinary narrative of revival.
Malvika Krishna, the daughter of former Karnataka Chief Minister SM Krishna, was born in 1969. She graduated from Bangalore University with a bachelor’s degree in engineering. In 1991, she married VG Siddhartha and they had two boys, Eshaan and Amartya.
Origin of the Cafe Coffee Day
Siddhartha was awestruck by the global popularity of cafeteria culture. His own farms produced the coffee beans that were utilised in the Cafe Coffee Day locations. In addition, the cafeterias had customised coffee machines. Furthermore, the Cafe Coffee Day outlet’s colour-coded motif and custom-made furniture pieces set it apart from the competition. Cafe Coffee Day originally opened its doors in Bengaluru in 1996. By 2011, it has evolved into a huge corporation with over 1000 locations around the country.
Unfortunately, Siddhartha lost control of his firm, and it soon became mired in debt. Cafe Coffee Day has a massive debt of Rs 7200 crore, according to statistics disclosed on March 31, 2019. VG Siddhartha committed himself on July 31st by plunging into the Netravati River. Malavika took over as CEO of Cafe Coffee Day Enterprises Ltd soon after (CDEL). She worked diligently for the expansion of the firm that her late husband had founded from that day forward.
The company thus started its safe journey in the hands of Malavika who introduced brilliant measures to revive the debts. Before serving as a CEO, Malvika worked as a non-board member of CDEL for many years. In a letter written to the Company’s employees, Malvika stated and assured to reduce the debt to manageable levels by selling some of the investments and assets. Not just this, but this wonderful woman expressed her commitment to the company’s leading future.
Malvika took over as the CEO of the company during the pandemic period. During an interview Malvika said “Somewhere along the way in the last twelve months, my mission has been to uphold the 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 foster our employees”
Despite the fact that the firm was in debt, Malvika opted not to raise coffee prices. She began closing down numerous locations that were not profitable, as well as withdrawing hundreds of coffee vending machines that had previously been put in various IT parks and corporations. She was also effective in acquiring new investors, which allowed her to increase the company’s capital.
Finally, her hard effort yielded positive results. The massive debt was reduced from Rs 7200 crore in March 2019 to Rs 3100 crore as of 31 March 2020. As a consequence of Malvika’s efforts, the debt was reduced to Rs 1731 crore by March 31, 2021. By closely following the COVID-19 standards, she was able to properly run the outlets even throughout the pandemic and shutdown. Cafe Coffee Day now has over 572 locations around the country. Not only that, but CCD operates about 36,000 coffee vending machines across the country.
Furthermore, she has had great success in the export of high-quality Arabica coffee beans. Her 20,000-acre coffee farm produces high-quality coffee beans that are in high demand not just in India but in other countries as well. Malvika Hegde is now known as a superwoman as well as a famous icon of the Cafe Coffee Day brand. She didn’t just prove herself as a courageous woman but also managed to showcase her skills and talent as a brilliant CEO.
The number of successful women CEOs has been increasing in recent times. Success stories like Malvika’s- of how she made her company stand out by pulling it out from the adversities- do a lot to inspire as well as empower women to climb the ladder. A ladder that will eventually lead them towards success.Add to favorites