We have got so used to reading about huge financial frauds and dishonest entrepreneurs who don’t dither to harsh legislation; many are absconding economic offenders. The big names on the list are holed up abroad. Some top-notch names such as Vijay Mallya, who owes Rs9,000 crore to a consortium bank, Nirav Modi, his wife Ami Modi, brother Neeshal Modi and uncle Mehul Choksi, named in the Rs12,636 crore fraud at Punjab National Bank, Jatin Mehta of Winsome Diamonds, who owes Rs7,000 crore, former Indian Premier League chief Lalit Modi and many more names are in news for past few years.
In an ever-growing mucky corporate fraud scene, it is rare to see a candid and upfront lady who wants to save her deceased husband’s dream company CCD (Café Coffee Day). I am talking about Malavika Hegde. She is the wife of the company’s founder late V G Siddhartha. Malavika Hegde, who prefers to stay low-profiled, is sitting at the helm of the Bengaluru-based enterprise since December 2020. By the way, it did not come as a surprise to the employees of CCD as everybody expected her to take a more active role at the office so they looked up to her to resolve matters during the crisis at CCD.
Café Coffee Day Global Limited Company is a Chikkamangaluru -based business that grows coffee in its own estates of 20,000 acres V.G. Siddhartha started the café chain in 1996 when he incorporated Coffee Day Global, which is the parent of the Coffee Day chain. The chain of restaurants rapidly expanded to other cities in India, with more than 1,000 cafés open across the nation by 2011.
On 29th July 2019, V.G.Siddhartha ended his life because he couldn’t take the pressure of the overburdened debts and another reason being Siddhartha was harassed by the Income Tax.
Malavika is certainly a very courageous lady. In a letter to the company’s 25,000 employees, Malavika assured to reduce the debt to a manageable level by selling a few assets and investments. CCD had 49 subsidiaries at one point. In the letter, she expressed her commitment to the company’s future. After Malavika took over as the CEO of the company it was the lockdown period of a pandemic; her first decision was not to increase the price of coffee. She pulled down the shutters of many outlets that were not making profits. She withdrew hundreds of coffee vending machines that were installed at many IT parks and companies. The brave lady successfully propelled capital into the company by approaching new investors. CCD debts are brought down to Rs 3100 crore as of 31 March 2020 from Rs 7200 crore in March 2019. As a result of Malavika’s initiatives, it further dropped to Rs 1731 crore on 31 March 2021. She successfully ran the outlets even during the COVID-19 by strictly following the pandemic protocols.
What is highly significant about Malavika’s leadership quality is that she decided to stand up and face the problems. What is highly appreciated about her is she faced all realities and practiced radical honesty. She prioritized preserving her late husband’s legacy. Thousands of people’s jobs were at stake, and she assured them of continued employment. CCD had to fight against its rising competitors such as Starbucks, Costa Coffee, McCafe, Lavazza, Dunkin Donuts, and a few more. Malavika took initiatives such as home delivery, multiple retail formats, and a digital presence, Café Coffee Day is fighting off competition while reinventing itself to stay ahead in the market.
Crisis Management
Every organization at some point faces a crisis situation; a crisis is any situation that challenges the reputation of an organization, its clients, donors, or individuals associated with it. Whether it is directly or indirectly, an organization’s reaction and response to the crisis situation directly impact its brand image. Malavika took ownership of the problems faced by CCD. Organizations must carry effective communication with all stakeholders; their employees, customers, suppliers, government, debtors, and creditors all the communication must be kept on which she did. In a crisis, problems must be resolved as early as possible which Malavika did, she became CEO of CCD in December 2020. In a crisis, leadership plays a pivotal role. It requires many competencies such as timely decision making, motivating employees, negotiating with stakeholders, facing competitors with effective strategies, etc. A good leader is a person with the ability to lead by example.
Malavika Hegde stepped into the shoes of her deceased husband. People who have worked with Malavika say she is a straight talker, someone who acknowledges the perils the company is in and wants to clear the mess for the sake of her two sons. She wants to keep CCD running.
Conclusion
I feel there is so much to learn from the dignified silence she maintained, her silent determination in clearing crores of rupees debt amidst tough competition faced by CCD, I see a demure woman who doesn’t show off her power. I am awe-struck with this gracious lady of iron will. She is a great mother to her sons, and a devoted wife to her late husband. I am sure under her brilliant leadership CCD has a great future!
