In 2019, after the death of founder V.G Siddhartha, the company had a debt of nearly Rs 7,200 crore. Employees feared job losses, investors lost confidence in the Cafe Coffee Day chain, and it was about to shut down. But Malavika Hedge, wife of V.G. Siddhartha, took charge of Cafe Coffee Day. Malavika Hedge's leadership helped reduce CCD's debt. According to sources, the Cafe Coffee Day debt came down from Rs 7,200 to Rs 1,731 crore by 2021 and even reduced further to Rs 465 crore.
Malavika took some of the important decisions when she stepped in as the CEO of the Cafe Coffee Day company. She sold all the non-core assets to repay lenders, including investments and properties. Malavika took another step where she focused on only profitable 450 efficient stores and shut the loss-making CCD outlets. Another major step Malavika Hedge took was expanding CCD's vending machine business in institutions and offices that generated steady revenue at reduced operating expenses. Further, she also negotiated with creditors and banks to restructure loans and focused on improving operational efficiency and digital growth of Cafe Coffee Day.
Malavika Hegde kept a calm and determined approach during these business crises. She focused on transforming a collapsing business into a stabilizing brand, which showcases her patience, resilience, and symbol of courage and smart financial management. This shows that even a struggling empire can be saved with courage and resilience.
|