Was VG Siddhartha's coffee business really a failed venture?
In an alleged letter by Siddhartha - addressed to the board members of CDEL and 'coffee day family' - he blamed himself for having failed to create a profitable business model in spite of his best efforts
- Jul 30, 2019,
- Updated Jul 30, 2019 9:02 PM IST
VG Siddhartha, the owner and founder of the largest coffee chain in India, Cafe Coffee Day (CCD), has mysteriously gone missing since Monday evening. Siddhartha, who is also the Chairman and Managing director of the Coffee Day Enterprise Limited (CDEL) - the holding company of all his companies- is the son-in-law of former Union Minister of Foreign Affairs and now BJP leader S.M. Krishna.
His sudden disappearance came as a surprise and caused a loss of over Rs 800 crore in the market capitalisation of the listed Coffee Day Enterprises. People who know him personally describe him as a courageous entrepreneur with an eye for good investments. In an alleged letter written (the company or the police authorities have not confirmed the authenticity of the letter) by Siddhartha - addressed to the board members of CDEL and 'coffee day family' - he blamed himself for having failed to create a profitable business model in spite of his best efforts. He further stated that a private equity investor was forcing him to buy back shares for a partial transaction carried out six months ago. He also faced pressure from other lenders and harassment by income tax officials.
However, a close look at the company's financials gives a different picture even as Coffee Day Enterprises appears to be a company with a complex operating structure.
VG Siddhartha, the owner and founder of the largest coffee chain in India, Cafe Coffee Day (CCD), has mysteriously gone missing since Monday evening. Siddhartha, who is also the Chairman and Managing director of the Coffee Day Enterprise Limited (CDEL) - the holding company of all his companies- is the son-in-law of former Union Minister of Foreign Affairs and now BJP leader S.M. Krishna.
His sudden disappearance came as a surprise and caused a loss of over Rs 800 crore in the market capitalisation of the listed Coffee Day Enterprises. People who know him personally describe him as a courageous entrepreneur with an eye for good investments. In an alleged letter written (the company or the police authorities have not confirmed the authenticity of the letter) by Siddhartha - addressed to the board members of CDEL and 'coffee day family' - he blamed himself for having failed to create a profitable business model in spite of his best efforts. He further stated that a private equity investor was forcing him to buy back shares for a partial transaction carried out six months ago. He also faced pressure from other lenders and harassment by income tax officials.
However, a close look at the company's financials gives a different picture even as Coffee Day Enterprises appears to be a company with a complex operating structure.