CCD, Cafe Coffee Day, India's most renowned coffee chain, had a massive setback in 2019, and there was hardly any hope that the company would survive. After the sudden death of CCD founder V.G. Siddhartha, the company was left with a Rs 7,200 crore debt. Investors and employees were worried, and the sustainability of the CCD brand looked quite uncertain. But during this tough period, Malavika Hedge, the wife of the founder V.G Siddhartha and daughter of the former CM of Karnataka, stepped in as CEO and took the responsibility to rebuild the coffee chain. Malavika Hedge had no experience in the corporate world, but she became a key figure in stabilizing Cafe Coffee Day and gained confidence among investors and employees.
According to the reports, the company had a debt of Rs 7,200 crore, and with strategic restructuring and disciplined financial planning, she managed to reduce the debt to Rs 465 crore.
Malavika Followed These Magical Strategies To Save The Cafe Coffee Day
Firstly, Malavika Hedge sold all the non-core investments and properties to repay the lenders. Second, the smartest decision she took was to close underperforming Cafe Coffee Day outlets. Also, she focused on steady revenue, strengthening the vending machine business expansion in institutions and offices, and ensured to reduce unwanted expenses. Another major step Malavika Hedge took was to export Arabic beans and close all the unprofitable Cafe Coffee Day stores across India. Business analysts praised her calm and leadership abilities during the tough business crisis. Malavika Hedge rebuilt a collapsing coffee chain business into a successful brand image.
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