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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 26,2020

Mangaluru, Apr 26: In the wake of the fears among local people regarding the cremation of coronavirus victims, an understanding has been reached with all stakeholders that the Mangaluru city corporation's crematorium here will be the official funeral site for such cases in future.

Mangaluru South MLA D Vedavyas Kamath, who had to face stinging criticism on social media for his alleged support to local people who stopped the cremation of a COVID- 19 victim at Pachanady near here on Thursday, took an active role in finding the solution.

The body of the victim, a woman, had to be taken from Pachanady to Kaikunje during the night, delaying the funeral by hours.

Kamath visited Boloor on Saturday and sought to convince the people that cremating the bodies of coronavirus victims would not endanger their lives in any way as the guidelines of WHO and union health ministry are being strictly followed.

The crematorium at Boloor is run by the MCC and has an electric furnace and firewood pyres.

Kamath said a tacit understanding that final rites of COVID-19 patients inDakshina Kannada will be performed at Boloor has been reached at a meeting with all stakeholders.

Cremating bodies in such a controlled environment is deemed safe as per guidelines, he said.

City Mayor Diwakar, local corporator Jagadish Shetty and MCC assistant commissioner Madan Mohan took part in the meeting.

The decision was conveyed to the DK district administration.

The district administration has also launched a campaign on dead body management protocol to convince the people to ignore misinformation being spread regarding the cremation of coronavirus victims.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 24,2020

Wayanad/Thiruvananthapuram, Apr 24: Amid the strict lockdown, a school teacher travelled from Thiruvananthapuram to Muthanga in Wayanad -- a distance of about 465 km -- on her way to neighbouring Karnataka en route to Delhi following which cases have been registered against her and an excise official.

The woman, Kamna Sharma, said to be working in Kendriya Vidyalaya, Pattom, undertook the journey on April 21 along with her two year-old daughter, police sources told news agency PTI.

An Excise Circle Inspector, Shahjahan, had provided his vehicle to travel allegedly on the instructions of Malappuram excise officer, in whose private vehicle, the woman and the child had reached Wayanad border from Thiruvananthapuram, the sources said.

The two were charged under the Kerala Epidemic Act and various sections of the IPC including sect 269 (negligent act likely to spread infection) and 271 (disobedience to quarantine rule).

Because of the lockdown even inter-district travel is not allowed by police and district administration, unless there is an extremely genuine reason.

A senior police official in Thiruvananthapuram said he does not remember issuing any such pass.

The woman may have "misused" government machinery as private vehicles would have been stopped somewhere during the long journey, he said.

She came to Kalpetta in Wayanad allegedly in an official car of the excise department.

Wayanad District police chief R Elango said that an FIR has been filed based on preliminary information and investigations have begun.

"We will check if she has followed procedures in obtaining a pass and if she made any false claim to get the pass."

As per preliminary information the woman came in an excise official's car from Thamarassery (Kozhikode) to Muthunga(Wayanad), he said. Her mode of transport before that--from Thiruvananthapuram to Wayanad--will also be investigated, he said, adding they have no information if she has reached Delhi.

"We will track down her movement," he said Meanwhile, theWayanad district administration has intensified the lockdown protocol from Thursday to prevent people's movement within and from outside the district/state.

Interception at all the check posts on district an state borders of the district, bordering Tamil Nadu and Karnataka, will also be intensified. No one would be allowed to travel frequently to and fro the district under the pretext of official duty.

Wayanad collector Adhila Abdulla said officials from outside the district will no longer be allowed to commute daily.

"Elderly people above the age of 65 should confine to their homes unless it is extremely urgent or unavoidable. Cases will be registered against family members who allow elderly people to go out for buying medicines and other essentials," she said.

Senior citizens, who live alone, can call either the Fire (101) or Police (100) departments for any help and to get things they need, the collector said.

Whatever relaxations were in place have also been withdrawn with effect from Thursday, she added.

Wayanad and Thiruvananthapuram come under the "Orange B" zone where there are some relaxations.

However, Thiruvananthapuram city limits falls under the hotspot area.

Police said a case was also registered against a doctor and her husband who entered Kerala from Tamil Nadu border.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 7,2020

Mangaluru, May 7: The Dakshina Kannada District Muslim Okkoota has strongly condemned permit for opening of textile and footwear shops across the district at a time when the number of Covid-19 positive cases are on the rise.

In a press note here on Thursday, former Mayor and Okoota President Ashraf alleged that the permission to open the shops at a time when Eid-ul-Fitr was nearing would lead to rush in the shops in turn bringing in fear of spread of Covid-19. 

He expressed his resentment over the fact that the administration has neglected the appeal made by the Okkoota as well as the Qazi of Udupi against permitting textile shops during the lockdown period.

He warned that the administration, district in-charge Minister, MLA and MP themselves will be responsible in case of increased infection cases due to this decision.

The district in-charge minister Kota Srinivas Poojary yesterday had announced that textile shops in the district can be opened from May 7.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.