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This article is more than 2 year old.

These are the assets of missing Coffee Day founder V G Siddhartha after Mindtree disinvestment

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After V G Siddhartha went missing on his way to this coastal city in Karnataka from Bengaluru, Coffee Day Enterprises, which runs Café Coffee Day, on Tuesday said it is formulating appropriate steps to ensure business operations are unaffected.

These are the assets of missing Coffee Day founder V G Siddhartha after Mindtree disinvestment
After V G Siddhartha went missing on his way to this coastal city in Karnataka from Bengaluru, Coffee Day Enterprises, which runs Café Coffee Day, on Tuesday said it is formulating appropriate steps to ensure business operations are unaffected.
"The board is confident that the professional management of the company and each of the entities in the Coffee Day Group and their respective leadership team, will ensure continuity of all business operations consistent with past behaviour," Coffee Day Enterprises said in a press release.
The board of directors of Bengaluru-based Coffee Day Enterprises today held an emergency meeting to discuss developments following its earlier communication to the stock exchanges and has reviewed a copy of the letter purportedly signed Siddhartha.
In a purported letter sent to the company board and the employees of the coffee chain he founded, Siddharth had on July 27 said he was under pressure from one of the private equity partners to buy back shares.
Overall valuations of assets owned by V G Siddhartha:
Mindtree: After the disinvestment of Mindtree to re-organise the group holdings, these are the ideas /outlook on some of our Companies.
Tanglin: The Mysore Road property with 90 acres and almost 4.5 million sqft built-up area with rental cash flow for the next 12 months will be 250 crore and additional 21 acres of land in Mangalore which is already in the company's name. With this rental yield and potential to construct the remaining land parcel by adding another 5 million sqft to the park, the Bangalore property alone should be worth around Rs 3,600 crore adding Mangalore to it, is around Rs 4000 crore.
Coffee Day: Coffee Day Global Ltd (CDGL) with 1, 600 stores and 54,000 vending machines & more than 500 express stores. This year March 2019 revenue target is Rs 2,200 crore. The brand is valued at 3- 4 times its revenue with a potential of Rs 7,000-8,000 crore present value. Our exports of around 20,000 tonne, Curing Works & Roasting factory in Chikmagalur with a land parcel of around 30 acres should have a Rs 150 -200 crore minimum value, additional 30 acres facility in Hassan should be worth Rs 150 crore. CDGL direct and indirect employees are more than 18000 people.
CCD vending machines: 45,000 vending machines can be easily added in the next 3.5 years, this is the potential and power of the brand. We are already talking with international players like Coke & lTC for partnership in the business. CCD has got a good procurement network to get 25,000-30,000 tons of coffee in the local market. The new roasting facility which has just started can roast around 15,000 tons of coffee and this can act as a great backend business in procuring & roasting with a lot of international brands instead of exporting green coffee.
Coffee Plantations: Coming to plantations, this is associated and owned by my family having more than 12,000 acres of coffee growing area. Almost 70 percent area has young plants which are producing 2,000 tonne of Arabica and 1,200 tonne of Robusta. Looking at the plant material it will produce 6-6,500 tonne of coffee in the next 2-3 years with little improvement in the irrigation system. Plantations division itself should be worth at least Rs 2,000 crore. It employ's 3,000 - 3,500 people. In addition, we have got around 9 lakh matured Silver Oak trees, even @ 25 cubic feet per tree into Rs 550 per cubic feet realisation should generate a value of around Rs 1000 crore. Other than Silver Oak, there are other valuable timber assets in the plantation. Total timber value alone would be around Rs 1,000-1,300 crore.
SICAL Logistics: In SICAL, our holding is around 60 percent, all the debt in Sical are projected debts which I feel can be taken care of by the company directly and Sical equity value of our holding should get around Rs 1,000 crore. Sica I directly & indirectly employs 4,500-5,000 people, has more than 1,300 vehicles operating in the cold chain, mining vehicles such as trucks, dumpers & excavators.
Way2Wealth: W2W generates Rs 5 crore EBIDTA every year, this business with cash on hand should get the value of around Rs 400 crore as a running business.
ITTIAM: our holding in ITTIAM is around 28 percent, there is every possibility that one portion of ITTIAM business can be sold at $50 million to a strategic investor, it looks like in ITTIAM our investment would be valued at around $20 million dollars (Rs 140 crore) because of strategic possibility.
Magnasoft: Our holding in Magnasoft is more than 80 percent. Some Industry experts are advising me on how to improve this business, with around Rs 10-15 crore EBDITA which can fetch us anywhere between 75 -100 crore today. Serai: has 3 properties located in Chikamagalur, Kabini and Bandipur with some stake in Barefoot Resorts at Andamans along with a land parcel there which should work out around Rs 300 crore.
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