Connect with us

News

Why entrepreneur CCD founder Siddhartha ended up the way he did

Published

on

On Wednesday, the coffee square on Vittal Mallya road in Bengaluru where the headquarters of Café Coffee Day (CCD) stands wore a desolate look. It was a quiet day, interspersed by the occasional arrival or exit of grim-faced senior executives.

Things have been rather tense ever since news emerged early on Tuesday morning that CCD’s founder Chairman VG Siddhartha was missing, and may have killed himself unable to bear the financial pressure he was under. His body washed up on the shores of Nethravati river early on Wednesday morning.

How did things come to such a sorry pass for a man labelled “India’s coffee king?” While there are many explanations proffered, a cursory reading of the group’s holdings indicate that while assets exceed liabilities, the issue seems to be an old one which has plagued ambitious entrepreneurs— excessive borrowing.

As of 31 March 2019 Coffee Day Enterprises Ltd (the holding company) had a debt of Rs 6547.38 crore. It wasn’t clear whether this includes Rs 2100 crore the company would have received net of taxes and expense after it sold the 20.41% stake it held in MindTree Consulting to L & T for Rs 3269 crore. Company officials did not respond to a request for comment. According to publicly available data as of June 2019, 75.70% of the promoter group’s holdings in Coffee Day Enterprises were pledged to lenders.

Share prices of most companies have fallen in the past months and Coffee Day’s were no exception. In the last three months alone, the company’s shares have fallen nearly 46%.

Trading in the scrip was halted on Wednesday after it was breached the lower circuit after plunging 20% on Tuesday.

A former senior associate of Siddhartha who is now an investor in startups claimed that the latter was looking to raise funds, but with little success. With funds failing to materalise and unable to liqudate the vast real estate holdings of the group, Siddhartha was staring down the barrel.

In the 27th July letter addressed to the board, in which Siddhartha indicated that he was giving up, he provided an estimate of what he thought the various group businesses are worth. By his own assessment the group’s assets seem to be in the range of Rs 15,000 crores and liabilities, less than half of that.

However, unable to service the growing mountain of debt and to liquidate his assets in a tough market, he seems to have decided to end it all.

On Wednesday, the board in a notice to the stock exchanges announced the appointment of S V Ranganath as the interim chairman of the board and Nitin Bagmane as the COO. Ranganath is a retired senior IAS officer, a former chief secretary of Karnataka who is known to be close to Siddhartha’s father-in-law, former chief minister S M Krishna. He also was the head of Coffee Board for a brief while in the late 1990s. Ranganath was an independent director on the board of the company.

Coffee Day Enterprise Ltd also said that it had taken cognizance of the statements in the purported letter from Siddhartha relating to financial transactions outside the knowledge of the senior management, auditors and the board. It also said the authenticity of the letter is unverified and it is unclear whether these statements pertained to the company or the personal holdings of Siddhartha.

The board also indicated that it has the backing of the family of Siddhartha including his wife Malavika Hegde.

Naresh Malhotra a former CEO of Cafe Coffee Day expressed shock at the developments “He was a fine entrepreneur. Very rooted and built a globally known retail brand. I am sure the board will ensure that the legacy of Siddhartha is protected and strengthened.”

source

News

Pleasant weather in Delhi, it will rain for the next two days.

Published

on

Representative Image | Source: NDTV

The weather pattern is changing in Delhi. The weather in the national capital has been pleasant since morning today (Wednesday). The wind is blowing between the movement of clouds, due to which the temperature has come down. According to the Meteorological Department (IMD), it will be partly cloudy in Delhi today i.e. on September 14. Also, there may be light rain or drizzle with winds at some places.

After the rains on Monday in Delhi, there was a slight drop in the temperature on Tuesday and people got a slight respite from the sultry heat. Meanwhile, the Meteorological Department (IMD) has predicted a change in the weather and light rain in Delhi-NCR from today i.e. Wednesday.

According to the forecast of the Meteorological Department, there may be light rain in Delhi for the next two days from today. It will be cloudy and winds will blow at a speed of 30 to 40 kilometers per hour. In Delhi today, September 14, the minimum temperature may be 26 degree Celsius while the maximum temperature may remain 34 degree Celsius.

Source: Aajtak

Continue Reading

News

Make Noida part of Delhi, AAP leader writes open letter to PM Modi

Published

on

Image Credit: Wikimedia

Aam Aadmi Party’s Gautam Buddh Nagar region president Bhupendra Singh Jadaun has composed an open letter to Prime Minister Narendra Modi requesting the incorporation of Noida inside the province of Delhi.

In the open letter dated September 12, posted from Jadaun’s twitter account, he has requested that Chief Minister of Delhi Arvind Kejriwal has been giving essential conveniences, for example, water, power, schooling, wellbeing, and transport to individuals of Delhi, which the occupants of Gautam Buddh Nagar locale (Noida) have been denied of. “Very much like Delhi, individuals of Gautam Buddh Nagar ought to likewise have the option to get free power, good education, the advantages of Farishte scheme; the ladies inhabitants ought to have the option free transportation; senior residents ready to go on pilgrimage free of charge; and they are not made to go around different offices to get their Aadhaar card, ration card or driving permit,” the letter peruses.

Jadaun has expressed that the occupants of Noida ought to likewise get the option to choose their delegates in the neighborhood enterprises, very much like it occurs in Delhi. Further, the occupants living in metropolitan and country regions in the area ought to get the possession freedoms of their territory, while the people who live in alleged unlawful provinces ought to likewise get proprietorship privileges alongside essential conveniences like in Delhi, he said.

Source: IndianExpress

Continue Reading

News

New rule on free electricity in Delhi, subsidy will not be available without applying from today, CM Kejriwal announced

Published

on

Image Credits: Hindustan Times

Delhi Chief Minister Arvind Kejriwal has made a big announcement. Now only those people will get electricity subsidy in Delhi, who will apply for it. The applications for this will start from today itself.

Delhi CM Arvind Kejriwal said that some people do not want to take free electricity. In such a situation, now only those people in Delhi will get electricity subsidy who will apply for it.

Form to be filled

A form will come along with the electricity bill. The form has to be submitted to the electricity bill center. He said that we are issuing a number (7011311111). A missed call has to be made on this number. A message will come on a missed call. There will be a link in it. Which will open the form on WhatsApp. Messages will also be sent to those whose mobile numbers are registered. The number of people who will fill the form on 31 October. They will get the benefit of the scheme. On filling the form in the next month, the bill of the previous month will have to be submitted. He said that his government would run door-to-door awareness campaign regarding this.

The facility will be applicable from October 1

Arvind Kejriwal said, earlier there used to be a lot of electricity in Delhi. We fixed it. Now electricity is available 24 hours. Electricity is available free of cost in Delhi. The money saved by stopping corruption is giving convenience to the people. He told that there are 58 lakh consumers of electricity in Delhi, out of which 30 lakh electricity bills come to zero. Half the bills of 17 lakh consumers come. We will give subsidy to those who ask for subsidy. This facility will be applicable from 1st October.

Source: Aajtak

 

Continue Reading

Newsletters

Enter your email address to get latest updates

Advertisement

Trending

Copyright © 2018 - 2022 Delhi Wire.