From son of a coffee planter to the Coffee King of India

News Network
July 31, 2019

He wanted to be an investment banker and had little interest in his family's coffee business. But a chat with the owners of German coffee chain, Tchibo, got V G Siddhartha to set up the Indian rival of Starbucks before debt and tax woes allegedly led him to end his life.

Siddhartha, the founder of India's biggest coffee chain, Cafe Coffee Day, was confirmed dead on Wednesday, days after he went missing. A purported letter written by him indicated that pressure from banks, investor and tax authorities drove him to end it.

Coming from a family that has a 140-year history of growing coffee, Siddhartha, around 60, initially dabbled in stock trading and wanted to work as an investment banker in Mumbai after completing his Master's degree in Economics from Mangalore University.

In 1984, he launched his own investment and venture capital firm Sivan Securities in Bangalore and began investing the profits from his start-up to buy coffee plantations in Karnataka's Chikmagalur district.

Around this time, he also began taking interest in his family's coffee business. In 1993, he set up a coffee trading company called Amalgamated Bean Company (ABC) with an annual turnover of over Rs 6 crore and over the years it increased to over Rs 2,500 crore.

Inspired by a chat with the owners of Tchibo, a German coffee chain, Siddhartha decided to open his own chain of cafes in a country that had no formative cultural grounding in cappuccinos. He opened Cafe Coffee Day's first outlet on Bangalore's upscale Brigade Road in 1994 with a tag line 'A lot can happen over a cup of coffee'.

It's now the largest chain of coffee shops in India, a nation of tea drinkers, with 1,750 cafes in more than 200 cities, including outlets in Prague, Vienna and Kuala Lumpur. Coffee Day went public in 2015.

Siddhartha currently has 200 exclusive retail outlets selling his brand of Coffee Day powder all over South India. ABC is also India's largest exporter of green coffee.

Expanding his business portfolio, Siddhartha ventured into IT sector and founded Global Technology Ventures Ltd that identifies invests and mentors technology companies.

He also entered the financial sector with investment firm Sivan Securities Private Ltd. The company has three subsidiaries - Chetan Wood Processing Pvt Ltd, hospitality business Barefoot Resorts and timber trading - Dark Forest Furniture Company.

In 1999, Siddhartha was roped in by IT veteran Ashok Soota when Subroto Bagchi, Rostow Ravanan and KK Natarajan were putting together IT firm Mindtree.

He was once the largest shareholder of Mindtree but decided to cash out. In March this year, he sold out his 20.41 per cent stake in MindTree to Larsen & Toubro (L&T), making close to Rs 2,858 crores profit. That deal helped him repay his debt of about Rs 2,900 crore.

Son-in-law of former Karnataka Chief Minister SM Krishna, Siddhartha found himself in trouble in September 2017, when the Income Tax (I-T) department conducted raids at over 20 locations linked to him.

Siddhartha reportedly had been witnessing rising debts, especially in the last few years.

His Coffee Day Enterprises Ltd had seen net loss widening to Rs 67.71 crore in the fiscal year ended March 31, 2018, from Rs 22.28 crore loss in the previous year. This despite revenues climbing 59 per cent to Rs 122.32 crore.

He was reportedly in talks to sell his real estate venture Tanglin Developments Ltd to New York-based private equity giant Blackstone Group.

The MindTree sale had vastly improved his financial condition and the real estate deal would have further cut his debt. He was also in talks to sell Coffee Day Enterprises, where he held 32.75 per cent stake, to Coca-Cola for as much as USD 1.45 billion.

And so his sudden disappearance from Jappinamogaru, which is very close to Netravathi river and three kilometres from the sea, on Monday evening has left questions unanswered.

A letter by him to the CCD Board claimed that he was being pressured by "one of the private equity partners" forcing him to buy back shares, a transaction he had partially completed six months ago by borrowing a large sum of money from "a friend".

The letter also talked about "harassment" by I-T Department official, who initially attached his shares in Mindtree.

The I-T Department on its part refuted the charges made out in the letter saying the signature on it does not match with the record available with it.

His wife, Malavika Hegde, with whom he has two children, is on the CCD board.

"Company is professionally managed and led by a competent leadership team, which will ensure continuity of business," the CCD Enterprise said in a regulatory filing.

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News Network
January 30,2020

Udupi, Jan 30: Fishermen in Udupi’s Malpe have netted ‘spanner crab’, a rare variety of deep sea crab, mostly found in Australia and Hawaiian coast.

Hundreds of onlookers were surprised to the see the catch when it was brought to Malpe harbour by the fisherman Prashanth Kunder and others on Tuesday evening.

Dr Shivakumar Haragi, Assistant Professor at Karnatak University, PG Centre Department of Marine Biology, Karwar identified this crab variety as ‘spanner crab’ and the scientific name of this crab is Ranina Ranina.

Ranina Ranina is mainly nocturnal as it remains active during night and is found buried in sand during the day .It is easily distinguished from other crab species in its habitat due to its red carapace and elongated midsection.

Resembling a frog in its shape, this crab species is found mainly in Africa, Hawaiian coast and also in the Great Barrier Reef, located in the Coral Sea, off the coast of Queensland, Australia. Its lifetime is seven to nine years and each crab weighs around 400-900 grams.

Prashanth Kunder and his associates have also netted a rare fish variety called yellow-edged lyretail. Another unique variety fish netted by Prashanth is epinephelus flavocaeruleus.

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News Network
July 4,2020

Bengaluru, Jul 4: Amid the rising COVID-19 cases in the state, the Karnataka COVID-19 Task Force has decided to set up booth-level committees across the state including 8,800 here for effective monitoring and surveillance.

The task force also released detailed guidelines for home isolation for asymptomatic cases including 17 days ''home isolation'' for patients below 50 years of age. It also warned of legal action against those health workers for disrespect to the bodies.

Briefing reporters after the meeting on Friday, Medical Education Minister Dr K Sudhakar said the local management will be strengthened for effective monitoring and surveillance of COVID-19 cases. "There will be booth-level task force committees throughout the state right from the village to Bengaluru.

These task force committees will act at the ultra local level. The task force will act as a structural and functional unit of COVID-19 dealing with monitoring, surveillance, checking of all the ILI cases, ambulances and hospitals," he added.

He also said the committees will comprise one member each from the Health department, police department, municipalities or Panchayat, volunteers, valveman. The committee will have five to six members.

The principal secretary in the Village Development and Panchayat Raj department L K Ateeq has been appointed as the nodal officer to manage the task force in the rural areas whereas in the urban areas, the Urban Development secretary, the municipal administration directors and the municipal commissioner will form the local task force.

"In Bengaluru alone 8,800 teams will be formed, which will be coterminous with the 8,800 booths in the city. They will provide the real-time data. They will be imparted training," the minister added. Noting that there were about 8,800 electoral booths in Bengaluru city and each booth will have a task force committee, he said a nodal officer has been appointed to oversee this.

The state level task force also came out with a slew of conditions. As far as home isolation is concerned, it would apply for patients who are below 50 years and have no symptoms of any other disease, and their homes should have a toilet and have an attendant.

He also said home isolation duration has been increased from 14 to 17 days. "People should not get fever in the next three days after completing 14 days, else they will be quarantined for another seven days. If they don''t get fever then they will be freed to perform their personal activities," Sudhakar said.

Those who are above 50 years and have comorbidities, will be treated at the COVID care centres only and they will be under medical supervision and be subjected to regular tests. The state is also making arrangements for telecommunication for those who are asymptomatic but wish to speak to a doctor.

It was also decided to have at least two ambulances in each of the 198 wards of Bengaluru. The minister said the additional commissioner of police (traffic) will be the nodal officer to coordinate the movement of ambulances. The task force has also appointed a nodal officer to manage the hospitals based on the availability of beds and ventilators. The officer will provide real time information about beds.

"We want to make sure that no one has to run from one hospital to another," Sudhakar said. On the cremation of the bodies, Sudhakar said guidelines have been issued on how to handle bodies at mortuaries, taking them in the ambulances, human treatment to the deceased while performing the last rites and fumigation of the bed. "Legal action will be taken against those who treat bodies in an inhuman way," Sudhakar said.

The state-level task force has also decided to arrange for test reports within 24 hours. It has also been decided to increase the testing capacity from the existing 15,000 a day to 25,000. In view of the spurt in COVID-19 cases, the task force also recommended antigen tests in crowded areas to check whether there was community spread.

To a question on closing down the border, the minister said there is no question of lockdown. "We cannot hide from this disease. It is not a solution. We have to live with it now, yet maintain a distance from it," he added. Sudhakar, who is a doctor himself, said COVID-19 is not as deadly a virus as those he had seen in the past and asked people not to be scared of it.

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News Network
March 6,2020

Bengaluru, Mar 6: All the arrested in a case of sedition filed over a school play in Karnataka's Bidar have been granted anticipatory bail by a court that said the case lacked enough basis.

The play, themed on protests against the Citizenship (Amendment) Act (CAA), "has not caused any disharmony in the society", said the district and sessions court in Bidar.

The play, performed in January by the children of prestigious Shaheen School, landed in trouble when a sedition complaint was filed over an 11-year-old girl's lines - enacting an elderly woman, she said if anyone asked for documents she would hit them with slippers.

That led to a sedition case and the police questioning children, teachers and the school management over many rounds.

"The drama has not caused any disharmony in the society. Considering all the circumstances, I am of the opinion that the ingredients of Section 124A of IPC (Sedition) are prima facie lacking," said the court.

Five members of the school management team have been granted protection from arrest. Earlier, the head teacher and the mother of the student who spoke the dialogue were sent to custody, but on other charges including the abetment of an offence. They were not accused of sedition. They were later granted bail.

The repeated questioning of young students and the arrest of the widowed mother of a student caused a huge uproar in the town.

An order is expected soon on the bail application in another sedition case in Karnataka, against three Kashmiri students. The students, who were studying in Hubbali in north Karnataka, are facing charges for reportedly using pro-Pakistani slogans in an online post. The Hubbali Bar Association had asked its members not to represent the students. Lawyers from Bengaluru who went to Hubbali represent the students were heckled.

On Thursday, a team of lawyers from different districts again went to Hubballi and were provided police protection. BT Venkatesh, one of the lawyers, said he had a meeting with bar association members and that the matter was sorted out. The students have applied for bail and an order is expected next week.

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