V G Siddhartha Coffee King

Topics: Stock market, Stock, Coffee Pages: 6 (1614 words) Published: March 29, 2011
V G Siddhartha Coffee King of Karnataka‚Chairman of ABCTCL

NameV. G. Siddhartha Hegde
EducationMsc( Economics)
Head quartersBangalore
IndustryAgriculture, Distribution, Retail

Some facts
Coffee Market in India
» Non Traditional coffee Market
» Grows 4 % of world coffee
» Consumes 30% of coffee produced
» Coffee culture unknown until late 1990
» V G Siddhartha’s family has been in the coffee business for more than 130 years
» The group owns 7‚000 + acres and manages another 3000 acres
» ABCTCL are the largest producers of Arabica coffee in Asia
» Cafe Coffee Day has 760 cafes in 115 cities in India
Current responsibilities:
Strategise value creation for shareholders and propel growth of return on investment, maintain investor relations and is a core member of GTV's Investor Committee
Board Seats:
GTV, Mindtree; Liqwid Krystal; Way2Wealth; Ittiam

Success mantra:Have the willpower to persist and simply refuse to give up.
Object of admiration:Infosys and its team’s success which achieved its target of $1 billion sales.
Biggest obstacle:Spiralling real estate prices which have made it difficult to get retail locations.


The Economic Times – Brand Equity survey 2008

India’s most trusted brands – ranked No. 2 in the ‘Food Services‘+ segment

CCD ranked as No. 31 in the top 50 service brands

"Best Coffee Bar" award from Times Food Guide 2007 – New Delhi

"Best Coffee Shop" award Times Food Guide 2007 – Mumbai

Awaaz Consumer Awards 2006 – Best Coffee Shop Brand

V G Siddhartha was voted as the "Entrepreneur of the Year" by Economic Times in 2003 – for crafting a successful pan Indian brand from a commodity business and giving Indian consumers a new life style experience that is within the reach of the common man.

The Beginning
"When I was a young man just out of college in Mangalore‚I decided that I wanted to get into business and make a lot of money: albeit‚in a very respectable manner."
There were three options that he considered seriously at that time: exports of some kind‚trading in stocks and shares‚and trading in metals. Metals‚he discarded‚as ‘not a very pretty option‘.
Even though his family owned some coffee plantations in Chikmagalur in Karnataka‚Siddhartha started out in life as a research analyst at JM Financial‚a financial services group‚back in 1983‚after graduating in economics from the state’s Mangalore University. At that time‚all he dreamt of was earning Rs 2.5 lakh a year.

His First Job
After a two – year stint with J M Financial Services‚when Siddhartha returned to Bangalore‚his father gave him a good amount of money to start any business of his choice. Siddhartha promptly bought a stock market card for Rs 30‚000 with it‚along with a company called Sivan and Company‚as well as a site in the city.While researching stocks‚he discovered that Indian farmers used to get 35 cents for 1 kg of coffee‚ while their overseas counterparts were getting $1.27. "I was a very smart trader‚" says Siddhartha with an endearing kind of self pride. "I made money almost every day on the stock market. And with whatever money I made‚ I kept buying coffee plantations in Chikmagalur.My family background was such that I had a mindset that the new economy might not be the greatest‚and that solid‚tangible‚physical assets like land were the best to own."

By 1985‚he was a full – time proprietary investor in the stock market and owner of 10‚000 acre of coffee farms.
When the stock market crashed in the early 1990’s‚Siddhartha began to look around for a new investment avenue that would spin him good returns. He decided to invest in technology.

First Company
Thus began Sivan Securities‚which is now a major player in the South Indian capital market‚which is now featured among the top 12 investment brokers in the country. It has a network of 35...
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