Cafe coffee day is the most inspirational story which we have heard in most recent years. The day when café coffee day chairman VG. Siddhartha died due to companies’ debts. But his wife had brought back the company to normal phase with a lot of courage. All social media motivational videos are filled with this content. Praising the leadership and courage of the lday who brought back the company into the race.
But the reality behind is hidden. What we see and listen to is just a lie. There are more dark secrets which are kept hidden in cafe coffee day story. The inspirational stories which we see in social media are fake. It was just a PR campaign which was made to attract small investors into the company. Let us know about the real story of cafe coffee day chairman Malvika Hegde.
What happened cafe coffee day:
Cafe coffee day the outlet which wee see on our long drives near the roads. A good vibing cafe. VG. Siddhartha cafe coffee day owner ended his life through sucicde in 2019. After his death, his wife Malavika Hegde has taken over the company. He told employees not to leave and she will pay their checks after few months with interest. She had given a good assurance to their employees even after the chairman death.
Chairman had died due to debts and loss in cafe coffee day. But I was wondered for her confidence about bring the company back to race. After a few months social media was circulated with her motivational stories. Those stories are inspirational too, but there was always a doubt regarding the company’s success even after the death of owner.
But many national media and popular TV channels have also telecasted her success journey. Which made me believe in these things. But as a share market enthusiast in those times the shore price was around sixty rupees. But at present the share is twenty-eight rupees if the company got succeded then why the price has been falling. These things were revolving around my mind when I saw the share price.
Recently I have seen an article regarding the fake success story of cafe coffee day. And began to explore the things about them.
What is the real story:
As I have mentioned PR marketing in the introduction, the things happened in the social media is PR marketing regarding cafe coffee day. As per them Malavika Hegde had turned around the cafe coffee day profits. But let us look at the profit and loss of cafe coffee day. I have taken the data through groww platform stock broker.
Here we can clearly see there is a huge fall in revenue since 2019. But no one shows this. When it comes to profits, from past 4 years the company has been making losses of three hundred crores on average.
Operating profit also went negative and sometimes single digit profit. This shows how low the company is. The company is making absolute losses, but we have heard the success story of the company.
They have sold the company’s assets and are running the business. Which have not been revealed by anyone who stated the success story. But the company’s assets fell drastically over the years to run the company.
Why this is done:
The success stories which we have heard from so called influencers are just a PR marketing stunt to grab investors. These stories made people buy their shares and raise some money from losses.
As per the marketing wise cafe coffee day has made a huge impact on world. No company does not dare to perform fake marketing for the bounce back of company.
Reality of Cafe coffee day:
The founder of Cafe coffee day had died due to debts of company. Now his wife claimed to be cleared the debts as per the videos circulating in social media. But in realty they were selling down the assets to clear debts. Which shows that the company has not bounced back in the market and is making profits.
Most of them have stated that top companies of India have purchased their shares which is good one to us to purchase them too. It is just a trash thing. Banks and financial institutions have purchased their shares instead of giving debts to them. When a company goes to RBI for debts, RBI does not give them, but they insist other banks and financial institutions to provide money for them by buying their shares.
This makes a 2-way profit to the company. One they get money and another by seeing these companies’ investment people will be able to purchase their shares again.
As Indians we need to know about Godrej and resemblence of Tata group. As Tata group have taken FMS BSNL to provide network at lowest prices.
