From a broken wife to a determined CEO: How Malavika Hegde stopped CCD from dying

Remember the shocking reports in 2019 about the suicide of V G Siddhartha, founder of India’s largest chain of coffee shops, Cafe Coffee Day. In December 2020, Malavika Hedge, Siddhartha’s wife, was appointed as the CEO of Coffee Day Enterprises Ltd (CDEL), the owner of the Café Coffee Day chain. The odds were against her. Yet, she has managed to script a wonderful success story. 

V G Siddhartha’s shocking suicide- the beginning of CDEL’s troubles 

V G Siddhartha’s suicide had also brought into focus the problems faced by CDEL. 

The CDEL founder had asked his driver to take him to a bridge close to Mangaluru. As per the driver, Siddhartha went out for a walk. He wasn’t seen thereafter, and his body was recovered later. 

A typewritten note was released by ANI. In the note, Siddhartha seemed to  be apologising for  “failing to create the right profitable business model.” He said that pressure from private equity partners and other lenders, and harassment from the income tax department had become unbearable. 

This meant that CDEL, the owner of India’s biggest coffee retail chain, was in trouble. This was a matter of shock for people across the country. 

After all, Café Coffee Day isn’t just a retail coffee chain, but also a part of the popular urban culture.  CCD owns 572 cafes across 165 cities in the country, along with 333 CCD Value Express kiosks. It is a huge business with a total of 36,326 vending machines serving coffee to CCD customers. 

Malavika Hegde takes over 

Malavika Hegde, the wife of V G Siddhartha, took over as the Chief Executive Officer (CEO) of CDEL in December 2020. 

This was quite a courageous move on the part of Hegde. CDEL had a debt of Rs 7,000 crore as of March 31, 2019. There was clearly a mountain of debt for Hegde to take care of. But Hegde, a heartbroken woman, decided to stand up to her problems instead of running away and fleeing abroad. 

As CDEL CEO, Malavika Hegde had a number of challenges in her way. She had to reduce the company’s debt burden in order to keep her husband’s vision intact. She also needed to keep the company afloat as the livelihood of thousands of employees was at stake. 

Malavika Hegde sets up CDEL for a miraculous recovery  

Hegde hasn’t only proved to be courageous but has also managed to showcase her skills and talent as a CEO. 

In August last year, CDEL said that it had reduced debt “significantly” and that the management was trying to put the company back on track. 

According to its annual report, the net debt of CDEL stood at Rs 1,731 crore as of March 31, 2021. It said, “The total loan funds stood at Rs 1,779 crore which comprises of long-term borrowings of Rs 1,263 crore and short-term borrowings of Rs 516 crore.” 

This was a considerable improvement in CDEL’s financial health. The company’s debt had stood at Rs 2,909.95 crore in FY 2020. CDEL would still want to improve further. But it has already managed to slash its debt burden significantly and is set to get back on track pretty soon. 

(Source: TFI Post)

Cafe Coffee Day founder VG Siddhartha's father, Gangaiah Hegde, passes away

Gangaiah Hegde was 96 and had been admitted to Shanthaveri Gopal Gowda Hospital in Mysuru, after suffering a fall in his house over a month ago.

Less than a month after Cafe Coffee Day founder V G Siddhartha allegedly committed suicide by jumping into river Netravathi in Mangaluru in the month of July, his father and coffee planter Gangaiah Hegde breathed his last at a hospital in the city on Sunday.

He was 96 and had been admitted to Shanthaveri Gopalgowda Hospital in the city, after suffering a fall in his house over a month ago.

Hegde had suffered a head injury after tripping at his house and was in a coma for some time.
Though he regained consciousness, he slipped into a coma again and ups and downs continued, till he was in the hospital for about one month and 20 days.

As his condition deteriorated further in the day, the doctors tried to revive his condition, but to no avail.
The end came at about 3 pm, Dr H V Santhrupt of the hospital told The New Indian Express. The body was later taken to Mudigere in Chikkamagaluru district by road at about 4.30 pm.

Three days before going missing on July 29, Siddhartha had come down to Mysuru and spent some time at the hospital. A photo of pensive Siddhartha seated on a chair next to his father's bed in the ward had gone viral, pithily indicating the cobweb of crises Siddhartha had found himself in.

Former chief minister S M Krishna too had visited the hospital a month ago, only to enquire the health condition of Hegde.
Siddhartha was the son-in-law of Krishna and was married to the latter's oldest daughter Malavika.

(Source: TNIE)

VG Siddhartha: A face beyond his coffee business

Siddhartha’s friends say he was more of a hands-on person and cared about every detail of his business, getting into nitty-gritty

Last week, everyone across Karnataka, or maybe across India, was glued to the television to find out the fate of one man -- VG Siddhartha.

For many, he was largely an unknown face. The few who knew him were aware only of his identity as owner of Café Coffee Day (CCD) -- a chain he had built since 1996.

That was until July 30 when the news of Siddhartha having gone missing was splashed across television channels and front pages of major news publications. After 36 hours of him going missing on July 29 evening, his body was found on the morning of July 31 in the Netravati River near Mangaluru from where he had allegedly drowned.

Those 36 hours saw multitude of reasons surface from people who barely knew him to becoming experts on matters related Siddhartha.

There were discussions and prime time debates on Siddhartha’s company, debt profile and how mounting debts and connection with politicians could have pushed him to the extreme.

Suddenly, all his businesses from coffee to real estate were scrutinized. Analysts began putting a number on debt ranging anywhere between Rs 3,500 crore and Rs 8,000 crore.

All based on a single letter, whose veracity is yet to be confirmed, purportedly written by Siddhartha on July 27.

But who was Siddhartha? According to his friends, Siddhartha was humble, unassuming and brave. That is why, for people who knew him and grew up with him, the sudden disappearance and news of his death that followed was so uncharacteristic of him.

One of the coffee day board members told CNN News18 that he/she too had been taken aback by what had transpired. Siddhartha they had known was nothing of that sort. He was much more than that.

Vinay Madhav, Siddhartha’s neighbour from Chikkamagaluru and a close friend, said, “I have known Siddhartha from childhood. He literally had solutions for everything. You would always see him smile even at the face of adversity.”

For this was not the first time he had faced public scrutiny. Madhav recounted a situation when his father-in-law SM Krishna was Karnataka’s Chief Minister.

Siddhartha had to deal with accusation of money laundering during that time. “There was much publicity around it that time. When I met him he just showed me few documents and said that he knew that one day he would be affected and had proof that would give him a clean chit,” Madhav said.

“But he did not want to do so unless there is a need. That was the kind of guy Siddhartha was,” he said.

Even as talks about the debt continue, Madhav said, Siddhartha had penchant for details.

Siddhartha was more of a hands-on person. He cared about every detail of his business getting into nitty-gritty.

It was this attention to detail that helped Siddhartha turn around Sivan Securities, the first company he bought with Rs 30,000 worth shares in 1992 and build an empire that now includes real estate, cement at one point and wealth management apart from his coffee business.

Madhav pointed out that Siddhartha was a visionary. “If you see how he started CCD, it was started as a cyber cafe in Brigade Road, first of its kind in 1996.”

“It was new and Siddhartha had a long-term vision. Today, it is present in 250 cities across the world,” he added.

Siddhartha’s huge debt and his sudden death, if anything, have confused them and raised more questions with no surety of getting answers.

The question now is -- what will happen to the businesses? The letter, allegedly written by Siddhartha, states his assets outweighs his liabilities.

True enough. His assets are worth Rs 18,000 crore as opposed to the Rs 4,000-8,000 crore debt being reported.

The coffee day enterprise board now has a huge task ahead to deleverage the assets, resume talks with potential investors for selling part of the business to dilute debt.

How could a detail-oriented Siddhartha have sunk is so much debt? Are there more to this than meets the eye?

Somewhere between 1992 and 2015 when coffee day was listed due to debt, he had faltered. Coming days might or might not give answers on the whys and hows.

With Siddhartha no more, one might never know.

(Source: Money Control)

Malnad remembers VG Siddhartha: Coffee king who created jobs, inspired entrepreneurs

VG Siddhartha was one of the biggest entrepreneurs from Karnataka’s Malnad region, creating jobs for close to 50,000 people, including those from his home district.

The death of Coffee Day founder VG Siddhartha as confirmed by Mangaluru police on Wednesday morning has left many in shock. His body was found at 6.30 am around 9 km from the spot where he went missing near a bridge on the Netravati river, more than 24 hours after a multi-department rescue operation began.

The 58-year-old was one of the biggest entrepreneurs from Karnataka’s Malnad region, creating jobs for close to 50,000 people, including those from his home district.

Siddhartha hailed from Chikkamagaluru district, the central part of Karnataka also known as Malnad, which is famed for its scenic hills, waterfalls, coffee estates and other plantations. The son of a coffee estate owner, Siddhartha’s family has been in the coffee growing business for 130 years.

Known as the coffee king of India, Siddhartha launched the first Café Coffee Day outlet in 1996 in Bangalore. Since then, the Coffee Day group has expanded massively, with the hospitality chain including two seven-star hotels. Siddhartha also had other business interests ranging from the furniture sector to IT to wealth management.

Jairam G Kimmane, a successful businessman from the region, said, “We are distant relatives and know him from 1985. He had established himself in a very big way. We all know him as a man of dignity and accountability. He has given a lot of jobs to people, especially for our people in that region. He is a prudent businessman who has been successful in managing such big plantations and build such a big brand.”

Halappa Gowda, a resident of Siddhartha's village and a long-time acquaintance, said, “He has given jobs to thousands of people who are employed in Hassan, Chikkamagaluru, Shivamogga, Coorg (districts forming Maland). Many people have gathered today after hearing the news. We are all worried about the situation. Even before him, his father used to manage acres of coffee plantations. He took over and has managed the business in the last few decades. He was a gem of a person. Very friendly and acted very humble with us.”

Many people who knew him personally vouch for his prudence in business and said that he was looked up to by entrepreneurs in India.

BS Arun, former president of Shivamogga District Chamber of Commerce, said that Siddhartha had very “good vision and very few people have come up like this over the years”.

“Nobody ever dreamt like him. At that moment, coffee was selling at a very high price, but he thought of retailing and building a brand. While there would be many investing in real estate or tourism, nobody like this invested in coffee and software business. He was a good motivator and provided employment to a lot of people,” Arun told TNM.

While Siddhartha commanded admiration from legacy businessman and people remember him as a job creator, a bunch of new-age entrepreneurs also looked up to him as inspiration.

Yashwanth Nag Mocherla, founder of The ThickShake Factory, a budding quick service restaurant chain, said, “First of all, for me and as well as hundreds of entrepreneurs and would-be entrepreneurs he was an inspiration.”

He added, “He wanted to build the Starbucks of India and even now when they have entered India, they are no match to CCD. My business plan for shakes was what CCD was for coffee. Since then and even today, we look up to CCD for inspiration, just to understand the market potential in every new city we go to. The kind of business that he has built over the last 25 years is phenomenal and don’t forget he was among the top four coffee exporters in the world.”

If you or anyone you know is feeling depressed or suicidal, consider reaching out to one of the following helplines:

Tamil Nadu:
State health department suicide helpline number - 104
Sneha Suicide Prevention Centre - 044-24640050

Telangana:  
Telangana government suicide prevention toll free number - 104
Roshni - 040-66202000, 66202001
SEVA - 09441778290, 040-27504682 (between 9 AM and 7 PM)

Karnataka:
Sahai 24-hour helpline numbers: 080-65000111, 080-65000222

Kerala:
Maithri helpline - 0484-2540530
Chaithram helpline - 0484-2361161
Both are 24-hour helpline numbers.

Andhra Pradesh:
Life Suicide Prevention Helpline - 78930-78930
Roshni -
Helpline 1: 9166202000
Helpline 2: 9127848584

(SOurce: TNM)

15-20 'sorry' calls... This was VG Siddhartha's last day

Being a single child, though Siddhartha was very ambitious, he was "very sensitive, shy and a loner by nature," say his friends.

It was just another Monday morning for the family of VG Siddhartha. Yes, they were a bit surprised when he left home earlier than usual, but never would they have imagined that his body would be found floating in the Netravati river two days later.

"Though Malavika (Siddhartha's wife) or SM Krishna (his father-in-law) didn't find anything odd with Siddhartha's behaviour on Monday, they were a bit surprised that he left home as early as 8 am to office. Siddhartha normally left around 9.30 or 10 am and it was slightly early for him to leave but there was nothing unusual about his mood that day," said a family friend who had spoken to Siddhartha's wife after the news of him going missing arrived.

According to sources, Siddhartha was at home on Sunday and had made several phone calls. He even had lunch at home with his wife and father-in-law on Sunday afternoon. He stepped out for sometime on Sunday evening and came back to have dinner before going to bed. Something must have happened in the night which led to this decision, suggest friends close to his family.

Family members and relatives pay their last respects to the mortal remains of Cafe Coffee Day founder VG Siddhartha in Chikmagalur Wednesday July 31 2019. | PTI

However, Malavika and S M Krishna are tightlipped about the sequence of events and have just hinted that he had been upset with the recent pressure from the I-T department.

Siddhartha has two sons, Amartya and Ishan. Amartya, the first son, is in the US and Ishan is in school.

He left on Monday morning around 8 am, saying there was work at the office and asked the driver to take him to the head office. After this, around 11 am he asked the driver to proceed towards Sakleshpura.

"He had even informed his family members that he was going to Sakleshpura. They were not surprised as the coffee king loved to visit his hometown and also his father's estate in Chetanahalli," said a close friend.

Siddhartha was the son of Gangaiah Hegde, a 95-year-old coffee planter, who is now unwell and in the ICU in a private hospital in Mysuru.

Siddhartha wanted to fight for the country as a soldier in the Indian Army. At the age of 18, he wrote the entrance examination for the National Defence Academy in Pune to enrol as a cadet but couldn't clear the exam.

Speaking at a conference in Kanpur, Siddhartha had reportedly said that the dejection of failing in the exam led him to join St Aloysius College in Mangaluru to do economics.

After this, against his father's will, Siddhartha decided to do business.

According to a write-up by a very close associate of Siddhartha's family, which was shared on social media, he told his father, "Look, dad, if I lose money in business, think that your son is wayward and ruined 100 acres of coffee estate on his vices. I will still be left with hundreds of more acres to inherit. I will come back and continue our plantation profession. If I succeed in business, then I will give jobs to at least 500 boys of our Chickmangluru district, who just loiter around their college," wrote Vinay Madhav, a close associate of the family.

Being a single child, though Siddhartha was very ambitious, he was "very sensitive, shy and a loner by nature," say his friends. He then worked with Mahendra Kampani of J M Financial Ltd for one year and even opened a stock brokering office in Bengaluru.

According to Vinay Madhav, impressed with Siddhartha, the then Union Minister SM Krishna helped him take over Sivan & Co, an almost defunct stock brokering office in Bengaluru, which had its offices on Church Street. Siddhartha soon became a "hero" amongst people in Chickmagalur. Everyone admired him for his sensitivity and were happy to know that he was marrying Krishna's daughter Malavika. 

"We grew up admiring Siddhartha as a rising star in Chickmagalur district. He used to attend most of the weddings in Chickmagalur and everyone was awed by his simplicity. He spoke to everyone with the same respect and ensured that his roots remained firmly in the local community. We spoke at length about how he had adopted a middle-class lifestyle, despite being a rich kid. It was said that he lived in a single room in Mumbai in a middle-class locality while interning with JM Financial Ltd. and stayed in a single room at Hotel Highlands for a long time after taking over Sivan & Co in Bengaluru. We all respected him a lot," writes Vinay Madhav.

It's unfortunate that the same man who on the outside looked so confident and full of ambition lost his will to live at the age of 60 and declared himself a "failure" in his letter to board members.

His close associate MLA TD Rajendra says, "He was a very simple man with a great family background. He had said that he was a "little upset' with the recent I-T probe which had hit his business. But we never thought he would contemplate suicide," he said.

Meanwhile, Siddhartha, according to his driver Basavaraj Patil, made a minimum of 15 to 20 calls along the way and kept apologizing to people.

In his statement to the police, he said Siddhartha "was making calls to people and saying sorry. I noticed he sounded upset but I had not even in my dreams thought that he would kill himself," the driver reportedly told the police.

The CCB police team from Mangaluru is yet to interrogate the CCD board members and family members to understand if Siddhartha was depressed and if the letter was sent on 27th July or if he emailed it on the day of his disappearance.

(Source: TNIE)

CCD owner VG Siddhartha’s body found near Mangaluru river 2 days after he went missing

A fisherman had claimed to have seen a man likely to be Siddhartha jumping into the Netravathi river from the bridge on Monday evening, police had said on Tuesday.

The body of Cafe Coffee Day (CCD) founder VG Siddhartha was found from the banks of the Netravathi River in Karnataka’s Mangaluru on Wednesday, two days after he went missing, police said.

The 60-year-old Siddhartha had gone missing on Monday evening from the road bridge between Ullal and Mangaluru over the river around 7pm, his driver Basavaraj Patil had told the police.

The 60-year-old Siddhartha had gone missing since Monday evening from the road bridge between Ullal and Mangaluru over the river around 7pm, his driver Basavaraj Patil told the police.(AFP photo)

“Around 6am today we found a body in the Hoige Bazaar area and we are trying to confirm if it is Siddhartha. We have informed his family and we have also sent the body to Wenlock Hospital to complete formalities. Our investigation will continue,” Mangaluru’s commissioner of police Sandeep Patil said.

A fisherman had claimed to have seen a man likely to be Siddhartha jumping into the Netravathi river from the bridge on Monday evening, police had said on Tuesday.

Siddhartha left Bengaluru on Monday afternoon to Sakleshpur near Hassan, where he has a house and one of his coffee estates. He told Patil to drive towards Mangaluru after a short break at Sakleshpur to freshen-up.

Siddhartha is the elder son-in-law of senior BJP leader, SM Krishna, who was the external affairs minister in the UPA-2 government (2009-12) and state chief minister (1999-2004) when in the Congress.

(Source: HT)

VG Siddhartha: Cafe Coffee Day tycoon's body found

The body of the founder and owner of India's largest coffee chain, Cafe Coffee Day, has been found near a river on the outskirts of the southern city of Mangalore, police say.

VG Siddhartha went missing on Monday after apparently walking away from his car and driver.

On Tuesday, police said a body had been found by fishermen on the river.

The identity was confirmed by members of Mr Siddhartha's family after the body was taken to hospital.

Mr Siddhartha's company, Coffee Day Enterprises Limited, held an emergency board meeting on Monday to discuss his absence. In a statement, it appealed for "the support and strength of all our stakeholders".

In a note to the stock exchange it said the company was "professionally managed and led by a competent business team" which would ensure the "continuity" of business.

Who was VG Siddhartha?
The 59-year-old coffee tycoon, who has been described in local media as "soft spoken" and "self-effacing", was not fond of the limelight.

He was born to a family of coffee plantation owners, but his first company was an investment firm. He used the profits from it to enter the coffee business, according to PTI news agency.

His decision to open a chain of cafes was inspired by a chat with the owners of Tchibo, a German coffee chain. Cafe Coffee Day opened its first outlet in the southern city of Bangalore in 1996. It wooed customers by offering them free internet with a cappuccino.

Mr Siddhartha saw the chain become one of the biggest brands in the country. It remained competitive even against global rivals such as Starbucks.

"He is singularly responsible for increasing domestic coffee consumption in India. There can be no doubt about it. In those days, we were completely dependent upon the export market and the heavy regulations on its sale," Dr SM Kaverappa, former vice chairman of the Indian Coffee Board, told BBC Hindi.

Mr Siddhartha is the son-in-law of former Karnataka chief minister SM Krishna and his wife is on the board of Cafe Coffee Day. The couple have two children.

What do we know about his disappearance?
Mr Siddhartha was travelling to Mangalore on Sunday evening when he asked his driver to stop the car on a bridge over the Netravati river on the outskirts of the city.

His driver told police that Mr Siddhartha then got out of the car and told him he wanted to take a walk. He also instructed him to park the car further ahead.

When Mr Siddhartha did not return after half an hour, the driver called his mobile phone - only to find the number switched off.

Alarmed, he informed the police who assembled two teams and searched the river on Sunday and Monday.

A fisherman found his body on Tuesday morning.

Why is his letter to the board of directors causing controversy?
In the letter, Mr Siddhartha says he was in debt and had "failed to create the right profitable business model despite my best efforts". It was signed by him and was also shared by his company with the stock exchange. It has since been widely circulated.

Mr Siddhartha's family verified he wrote the letter, police told BBC Hindi's Imran Qureshi.

"I am solely responsible for all mistakes. Every financial transaction is my responsibility," it said. "My intention was never to cheat or mislead anybody. I have failed as an entrepreneur."

However, Mr Siddhartha also accuses a former director general of the income tax department of harassing him, which he says, led to a "serious liquidity crunch".

This has caused a political outcry, with opposition MPs calling it targeted harassment. They are expected to raise the issue in parliament on Wednesday.

The income tax department has denied the allegation and questioned the letter's authenticity, saying that the signature did not appear to match Mr Siddhartha's signature on his company's annual financial reports.

The company board, too, has questioned the letter's authenticity in a statement, adding that it would "thoroughly investigate the matter".

How big is Cafe Coffee Day in India?
Cafe Coffee Day is India's largest coffee franchise chain. It has about 1,750 cafes across the country and some international outlets including in Malaysia, Nepal and Egypt.

However, local media reports have said its rate of expansion had slowed significantly over the last two years in the face of increased competition.

Mr Siddhartha owned a 33% stake in the company, but through his family and holding companies controlled closer to 50%.

The local Economic Times newspaper reported that he had been in talks with Coca-Cola to sell the company for $1.45bn (£1.19bn) although this was not officially confirmed by either side.

Mr Siddhartha's letter said the chain was struggling with financial problems due to debt, taxes and share buy backs.

Shares of the company have fallen by around 20% since his disappearance was reported.

(Source: BBC)

Indian coffee tycoon V.G. Siddhartha's body found floating in river

Authorities in Karnataka recovered the body of coffee baron V.G. Siddhartha floating in a river on Wednesday, two days after his disappearance sparked speculation that he was under intense financial strain.

The recovery of Siddhartha’s body unnerved investors in his flagship listed Coffee Day Enterprises Ltd and sent its shares plunging to an all-time low on Wednesday.

Coffee Day Enterprises held an emergency board meeting on Wednesday and named independent board member S.V. Ranganath as interim chairman. The company has also set up a committee that will be vested with the powers of the chief executive and they will explore opportunities to deleverage the Coffee Day Group.

A letter, purportedly written by Siddhartha and addressed to his board and employees, said he “gave up,” blaming an unnamed private equity partner for pressuring him into a share buyback and tax authorities for “harassment” and decisions that caused a liquidity crunch.

Siddhartha’s letter also mentioned hidden transactions that even auditors and senior managers were unaware of. Reuters was not able to confirm the authenticity of the letter, which was available on social media and published by local media.

While the authenticity of the letter has still not been verified, the board has taken serious note of its contents and will thoroughly investigate the matter, the company said.

Shares in Coffee Day hit their lower limit for the trading day and plunged 20% to a fresh all-time low of 122.75 rupees on Wednesday, fresh off the back of another 20% slide on Tuesday.

“I think the company, its brand, its franchise has value, if it gets sold to an external buyer,” said Deepak Jasani, a senior vice-president at HDFC Securities. “A lot will depend on whether and when the board or top management takes a call on selling the business or not.”

POLITICAL OUTCRY
Siddhartha was travelling to Mangaluru, a port city about 350 km (218 miles) from India’s tech hub Bengaluru, on Monday when he asked his driver to wait for him on a bridge while he went for a walk, according to police.

The driver alerted the police when Siddhartha did not return.

“We found the body about half a kilometre from the sea,” said Ritesh D’Souza, 34, a local fisherman who helped retrieve Siddhartha’s body.

Authorities declined to say whether they were treating his death as suicide or foul play.

Siddhartha, 59, was widely recognised for having brought the coffee shop culture to a largely tea-loving India and he was also hailed as one of the country’s early venture capital investors.

India’s opposition parties seized on the letter, accusing Prime Minister Narendra Modi’s administration of spooking businesses with heavy-handed tactics.

“His is the ugliest example of how agency persecution is wrecking India’s growth story,” tweeted Congress politician Milind Deora. “Hope govt reflects on its anti-business policies!”

The government did not immediately respond to a request for a comment on the allegations made by the opposition.

The Income Tax department issued a statement on Tuesday saying Siddhartha had failed to disclose some income, and it stressed that authorities’ actions were normal.

DEBT WOES
Siddhartha, who hailed from a coffee-growing family, opened his first coffee shop in 1996, more than a decade before global coffee shop giant Starbucks began its foray into the country. His Cafe Coffee Day chain boasts more than 1,600 outlets servicing a burgeoning middle class.

Siddhartha, who owns a direct stake of 32.75% in Coffee Day Enterprises, was also widely seen as a savvy investor who made some prescient early investments in Indian IT service firms such as Infosys and Mindtree in the 1990s, years before global firms began to bet on Indian start-ups.

His flagship entity, however, faced queries recently over outstanding debt, competition from trendier rivals, and scrutiny from tax authorities over unpaid dues.

Siddhartha, his family and their holding companies pledged or encumbered about 75.7% of their stake in Coffee Day toward various borrowings. Coffee Day’s 2018 annual report showed Siddhartha had personally guaranteed most of the borrowings.

Siddhartha’s letter, which included a list of many assets, stated that the value of the company’s assets outweighed its debts, and these could be use to repay everybody.

(SOurce: Reuters)