[CarJunki]

He invested in many startups (in and around Bangalore), some of them became big success (like MindTree), some were more moderate. One thing is sure, his impact as investor to the Bangalore tech startup scene is quite big. Very many small startups have lost a good friend.

It is also possible that his problems did not originate from CCD or Tech companies but other investments (most probably real estate). In IT space most PE or VC understand the uncertainty of returns (or capital preservation). In real estate business, this understanding is possibly missing.

[deehunk]

Originally Posted by ajmat

Not exactly, he might have financed it. The Bagmane's are his mother in laws family. One of them is a junior partner in some of his ventures

His success in Coffee Industry is unmatchable. But in real estate, there is always a benefit of doubt. Another serious allegation he faced was about the CA site near Udupi Garden signal, today there is Advaith Fuel station. When the layout was developed in 90's that land was allocated for Park. The real beneficiaries of land dealings are still active in business, VGS may be a scape goat. Most of the Tech Parks on ORR from Iblur to Marathalli are on encroached lakes. He alone cannot be blamed, all political parties have benefitted from him. SK Hiremath who was a prominent activist against lake encroachments was silenced after 2014. My conclusion is people who are at peak of their success should be aware of the people around them.

[livyodream]

Originally Posted by Guna

But Mr. Siddharth was hounded by the ED in the case of unaccounted money (in the tune of Rs 400 crore) and looks like there is a Hawala angle to it. Probably this is what he has referred to in his letter, when he mentioned about the 'transactions only known to him, and only he is responsible'.

Did not expect but got to read this link which hints about hawala:
https://m.republicworld.com/india-ne...what-led-to-it

[Altocumulus]

Even though I hated the Coffee at CCD, what he accomplished was commendable and disruptive. He did not deserve a end like this. Even if the rumors are true about foul play, he did not eat away someone else's hard earned money to line his pockets. I guess after a certain level you won't be able to avoid it. Not an excuse but a sad reality. He left enough behind to cover everything which shows at least to me he wasn't one of the bad guys.

[msdivy]

From the above posts, it seems if he had focussed on coffee, we would have India's answer to Starbucks. But got distracted with real estate. Anyway, a sad end.

[poloman]

RIP the departed soul. Unfortunately a significant percentage of Indian companies operate in total opaqueness and end up destructing investor wealth and confidence one fine morning like this. They operate in a maze of shell companies which are used as fronts for hawala dealings and money laundering. Round tripping of loans is another trick in the book.Cooking up books is common in connivance with auditors.Now that Govt has tightened the screws, many of these companies are going belly up.


There is not much difference between a Mallya and a Siddhartha. People despised Mallya due to his flashy lifestyle where as Siddhartha appeared to be a do gooder and media shy. But behind the scenes it looks like he was used as a front for big politicians in Bangalore to launder their ill gotten wealth.
Why is real estate turning out the grave yard of many businessman? because that is where most of the politicians in this country also operate..

[avira_tk]

Originally Posted by livyodream

Did not expect but got to read this link which hints about hawala:
https://m.republicworld.com/india-ne...what-led-to-it

It's quite amazing that only these guys have the contacts to gather so much information from tax authorities at the drop of a hat.

The hawala link is a smear on a political rival, blatantly obvious to anyone who follows KA politics. A known hawala operator is a stretch even as conspiracies go, a less reliable news source than republic is hard to find. Politics and real estate are clearly involved, just not in the way republic News would have us believe.

[Guna]

Most amazing thing I came across on Wikipedia
"Daffco Furniture
.........
........

V G Siddhartha had leased 1.85 million hectares of Amazonian forest land for 30-year from the Republic of Guyana in South America for a furniture business in India. The Amazonian logs from Greenheart, Purpleheart, Wallaba and Bullet Wood logs were shipped on chartered ships from the Guyanese capital Georgetown to the Mangalore Port and then to the Coffee Day Group’s furniture plant in Chikmagalur. The Guyanese government allows cutting of only four full-grown trees from every hectare (approximately 2.5 acres) and when one tree is cut, it is mandatory to replant another to maintain the ecological balance of the Amazon rainforest."

This almost reminds me of Steve Jobs, who setup a glass factory just because he could not procure the kind of glass he wanted to use in iStores.
Timber from those 1.85 million hectare itself could have been a profitable business!

[hrman]

Very very sad and shocking news. I was employed with them for a few years and the mammoth employment opportunities given and the diversity of businesses and size of the group needs to be seen to be believed. He was always known as a humble, down to earth man who could relate to all employees and people at all levels. Some incidents I recall:

1. We had a review meeting around lunch time. The first question he asked is if we had lunch. When we hesitated to respond (we were all working on the presentation and had not eaten), he postponed the meeting by half hour and asked us to have lunch and come for the meeting.

2. The last I remember of him, he still had a feature phone and preferred using it over the touch screen phones

3. CCD was initially started as an internet cyber cafe where internet was charged and coffee was free. The business model turned 180 degrees during the later years. (Coffee was charged, wifi was free)

4. He had an Innova which was used for many years. He later bought a Range Rover purely because it was a safer car and he admitted he spent a lot of hours on the road and many people's lives and livelihoods depended on him.

5. He liked to come to and start his work early in the morning when the mind was fresh.

6. He was advised by one of the Premier IIM Bschool graduates that he should not venture into the coffee chain business in 1994-95. Years later, he always mentioned this in meetings and how important it is to follow your dreams and have a strong conviction as an entrepreneur.

7. In the initial Infosys IPO days 26 years back, he along with some partners had underwritten Infy's IPO and purchased shares. These were very profitable investments as it was realized years later.(Rs.10000 in infy shares in 1995 is worth roughly Rs.2+ crores today)

And many other such incidents. Hard to believe he took his own life. Great person and one of the early 1st gen entrepreneurs who leveraged a hugely government controlled coffee bean business and brought it to the world in different formats.

RIP!!

@Paragsachania, we have lot to share about ABCTCL. What you have mentioned is spot on.

[Guna]

Originally Posted by Altocumulus

He left enough behind to cover everything which shows at least to me he wasn't one of the bad guys.

No doubt about it. Bad guys don't kill themselves (mostly). We have an example of a bad guy who has run away from the country and now he is citing this incident (an example of harassment) and trying to use it as a shield.

[Miyata]

RIP.

While no one is perfect, he was among the finest persons I've read about. India could surely benefit with more people like him.

I had always thought of him along the lines of Ratan Tata.

He will be missed by many.

[parth.jain]

It's a sad news. Someone who has built so much in his life doesn't deserve to go like this.
There could be many reasons which led him to take such a drastic step. It's difficult to do business in today's time. Whenever some works hard & tries to be successful, other people are most interested in becoming a hurdle in their success rather than supporting him. Different govt. departments are there to bite anyone who is rising. People buy Assets to support them in their troubled times but they are hardly able to sell them when the need arises. All this leads to depression and he loses all his hope, nothing seems to work.

May his soul rest in peace.

[sgiitk]

By all accounts he got his finances into a big mess. So took the easy way out. He did change the habit of Indians (esp N) from Chai to Kapi.

[deehunk]

Originally Posted by Guna

No doubt about it. Bad guys don't kill themselves (mostly). We have an example of a bad guy who has run away from the country and now he is citing this incident (an example of harassment) and trying to use it as a shield.

My grand father used to say that when Britishers left India, people who were close to them or who worked as house maids in Bangalore became millionaires overnight. Mallya's comparing himself to VGS is nothing but nonsense. VGS was not an opportunist, the crowd at his ceremony speaks about his good deeds. I cannot digest easily that people responsible for the fate of VGS are shedding crocodile tears.

[The Observer]

It is really sad and disheartening to read the untimely demise of such a good entrepreneur.

It is hard to not suspect any foul play in this whole story while it may be evident that all was not good with his enterprise.

I hope we have a thorough and deep investigation which reveals the truth and who all were involved and who were coercing him. I request that we do not jump to any conclusions about the departed soul until then. I am sure we all know that being an honest and successful business man/woman in India does not make you immune to people with more money and power lurking around who only care about fattening their coffers come what may.