Year After Cafe Coffee Day Founder's Death, Wife Malavika Hegde Appointed CEO

Malavika Hegde, the daughter of former Karnataka chief minister SM Krishna, will take the reins of the company after being appointed as the CEO with immediate effect.

Café Coffee Day Empire: After the shocking incident last year in which the Cafe Coffee Day founder VG Siddhartha death by suicide came to fore, his wife Malavika Hegde has been appointed as the CEO of the coffee chain on Monday. In July last year, VG Siddhartha has mysteriously disappeared after stepping out of his car for a walk at a bridge near Mangaluru in Karnataka. After two days his body was recovered from a nearby river and it was declared death by suicide. Siddhartha, 59, is credited for having brought the coffee shop culture to a largely tea-loving country, and was also seen as one of India’s early venture capital investors. As per reports, VG Siddhartha took the extreme step after coming under financial distress. His debt stood at Rs 2,000 crore which is separate from the consolidated borrowings of his coffee business which amounted to Rs 6,547.38 crore as of March 31, as per Mint. Later in an unverified letter, Siddhartha also alleged harassment from Income Tax officials. Coffee Day Enterprises shares had crash after the incident unfolded, and later being suspended from trading since February 3. What happened after founder's death? After this episode, Coffee Day Enterprises named independent board member SV Ranganath as the interim chairman of the group. Hegde is the wife of late V.G.Siddhartha, the founder of Coffee Day Global Ltd and Amalgamated Bean Coffee Trading Co. Ltd. On Monday, Hegde was appointed as the CEO with immediate effect. She is the daughter of former Karnataka chief minister SM Krishna. Malavika Hegde, who is a director in Coffee Day Enterprises had earlier said that she is “resolutely committed” to the future of Cafe Coffee Day. She has clarified then though the company’s challenges are far from over, it intended to sell some more of its investments to reduce its debt. Bengaluru-based Cafe Coffee Day runs hundreds of coffee shops across India that brew cappuccinos and lattes for India’s booming moneyed class and compete with the likes of Starbucks Corp, Barista and Coca-Cola Co-owned Costa Coffee.