Missing VG Siddhartha's Coffee Day Enterprises valued at Rs 18,000 crore; CCD brand alone worth Rs 8,000 crore

In reply to a clarification sought by the Bombay Stock Exchange on the note purportedly written by Chairman and Managing Director V. G. Siddhartha to the Board and Employees, Coffee Day Enterprise Limited (CDEL) said that the board met for an emergency meeting. The company said it is confident that each of the business entities will ensure continuity of business operation. Meanwhile, the board is evaluating and assessing appropriate steps to ensure that business operations are not affected.

According to the additional details provided by the company to BSE, post the divestment of stake in Mindtree, the company is looking at re-organising group holdings. The total tangible asset are valued at over Rs 10,500 crore and the Cafe Coffee Day (CCD) brand alone is valued at another Rs 7,000-8,000 crore putting the total worth at over Rs 18,000 crore. Coffee Day Global Limited, that runs the coffee chain has a footprint of over 1,600 stores with 54,000 vending machines and more than 500 express stores.

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CDEL said the 90 acre Mysore Road property in Bengaluru with 4.5 million square feet built up area has a potential of generating Rs 250 crore in a year in addition to 21 acres of land in Mangalore which the company owns. While the Bengaluru property alone could be worth Rs 3,600 crore, the Mangaluru land would be worth Rs 400 crore. The land is valued at Rs 4.000 crore.

Siddhartha's family owns over 12,000 acres of coffee plantations. The plantations division which employs over 3,000 people is said to be worth at least Rs 2,000 crore. In addition, the silver oak trees and timber assets in the plantation are valued at another Rs 2,300 crore. The company which exports around 20,000 tons of coffee also owns a curing works and roasting factory in Chikmagalur on 30 acres of land valued at Rs 150 -200 crore. In the listed integrated logistics solution company Sical, even after discounting for debt, the 60 per cent stake of CDEL is estimated at an equity value of Rs 1,000 crore, while the finance business of Way2Wealth has been valued at around Rs 400 crore.

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The company which also has a significant holding in technology companies like ITTIAM , Magnasoft has been valued at Rs 200 to 240 crore. Siddhartha's hospitality business has three flagship resorts in Chikamagalur, Kabini & Bandipur with some stake in Barefoot Resorts in the Andamans along with a land parcel is estimated to be around Rs 300 crore.