The founding father of India’s largest coffee chain, Café Coffee Coffee Day (CCD), has gone lacking.
The coffee chain stated in a securities alternate submitting that its chairman and managing director, V. G. Siddhartha, one of many richest individuals in India, has been lacking since not less than Monday night. CCD has additionally produced a foreboding letter allegedly written by Siddhartha, though some authorities officers have questioned its authenticity.
“We’re shocked by this improvement and our ideas and prayers are in assist of his household and family members,” Café Coffee Day stated in a press release revealed at the moment.
Indian authorities have been looking for Siddhartha, who’s believed to have traveled from Bangalore to Mangaluru in Karnataka state on Monday earlier than he requested the driving force to cease his automotive to stroll alongside a bridge over the Netravati River, close to the place it meets the Arabian Sea.
The son of a coffee farmer whose household has spent the previous 140 years rising coffee, Siddhartha initially bought quite a few coffee plantations in Karnataka’s Chikmagalur district after a short however profitable profession in monetary investing, in line with the Occasions of India. In 1996, Siddhartha opened the primary Café Coffee Day location in Bangalore, 11 years earlier than the chain’s greatest competitor, Starbucks, opened in India. Starbucks quickly after closed all its places in India earlier than relaunching within the nation by means of a partnership with Tata in 2012.
As of final yr, Café Coffee Day had some 1,700 places throughout 245 cities, in line with CNN stories. The corporate — which grew to become publicly traded in 2015 — additionally owns quite a few worldwide places, together with within the markets of The Czech Republic, Austria, Egypt and Malaysia. CCD has been constructed upon a vertical mannequin, whereby it owns and operates quite a few giant coffee plantations, controlling your entire provide chain.
Based on Forbes India Journal (no hyperlink out there), Siddhartha’s inexperienced coffee manufacturing and export firm, Amalgamated Bean Coffee Buying and selling Firm, owns greater than four,000 hectares (12,000 acres) of coffee farmland. The Financial Occasions reported final month that Siddhartha was trying to promote the coffee firm to Coca-Cola.
“We’re taking the assistance of involved authorities,” CCD wrote in in a securities alternate submitting at the moment. “Firm is professionally managed and led by competent management group, which is able to guarantee continuity of enterprise.”
The corporate has additionally shared a duplicate of the letter allegedly written by Siddhartha — who owns a 33 % stake, in line with a submitting final month — signed July 27. In it, the businessman purportedly paints an image of personal monetary woe, and immense strain from buyers and tax authorities.
“I’ve did not create the correct worthwhile enterprise mannequin regardless of my greatest efforts,” Siddhartha allegedly wrote, including, “I fought for a very long time however at the moment I hand over as I couldn’t take any extra strain from one of many personal fairness companions forcing me to purchase again shares, a transaction I had partially accomplished six months in the past by borrowing a big sum of cash from a pal. Large strain from different lenders result in me succumbing to the state of affairs.”
The letter continues, “I sincerely request every of you to be sturdy and to proceed working these companies with a brand new administration. I’m solely liable for all errors. Each monetary transaction is my duty. My group, auditors and senior administration are completely unaware of all my transactions. The regulation ought to maintain me and solely me accountable, as I’ve withheld this info from all people together with my household.”
Nick Brown is the editor of Each day Coffee Information by Roast Journal. Suggestions and story concepts are welcome at writer (at) dailycoffeenews.com, or see the “About Us” web page for contact info.