V G Siddhartha, the owner of India’s largest coffee cafe chain under Cafe Coffee Day, is moving swiftly to consolidate his holdings in the coffee estates across Chikmagalur in Karnataka.
Siddhartha, who already controls an expansive 10,500 acres, has acquired another close to 900 acres under Kumergode Estates, situated in Mudigere Taluk, Chickmagalur for estimated Rs 40-50 crore. Kumergode Estates primarily cultivates Arabica crop in its estates and also has a small presence in minor crops such as paddy, cardamom and pepper.
Siddhartha, who already controls an expansive 10,500 acres, has acquired another close to 900 acres under Kumergode Estates, situated in Mudigere Taluk, Chickmagalur for estimated Rs 40-50 crore. Kumergode Estates primarily cultivates Arabica crop in its estates and also has a small presence in minor crops such as paddy, cardamom and pepper.
Siddhartha, who hails from Chikmagalur, has been over the years acquiring rapidly coffee estates under Amalgamated Bean Coffee Trading Company Limited, which is one of the top three coffee exporters from India. ABCTCL currently has 12 major coffee estates supplying coffee to various countries besides catering to its chain of coffee across India, which is present across 1,500 locations in India.
This move by Siddhartha to consolidate and expand his presence across Chikmagalur coffee estates comes at a time when Bangalore-based real estate developer – India Builders Corporation, has been aggressively expanding its holdings and is understood to have control over 5,000 acress of coffee estates and is looking to consolidate further.
According to industry analysts, an acre of coffee estate across Chikmagalur, depending on the kind of coffee crop, varies between Rs 10 lakh to Rs 25 lakh an acre.
According to industry analysts, an acre of coffee estate across Chikmagalur, depending on the kind of coffee crop, varies between Rs 10 lakh to Rs 25 lakh an acre.
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In addition to expansive coffee estates, Siddhartha has also established an uber-premium hospitality business under – The Serai – the flagship property of which is situated nestled across close to 70 acres coffee estate in Chikmagalur.
Senior industry sources indicated that Siddhatha has been investing back substantially to develop the society in Chikmagalur through education and healthcare support across various villages and also to take care of the coffee cultivators across the region.
“He has an intense passion to develop Chikmagalur and bring in employment generation activities to the region,” a senior industry official close to Siddhartha told Business Standard.
In addition to expansive and pristine coffee estates, Siddhartha has also put up a small processing plant, employing locals, to make furniture for his coffee cafes across India. He is also in the process of setting up an another expansive furniture processing unit in Chikmagalur and is understood to have acquired as much as 60 acres for the same.
In addition to expansive and pristine coffee estates, Siddhartha has also put up a small processing plant, employing locals, to make furniture for his coffee cafes across India. He is also in the process of setting up an another expansive furniture processing unit in Chikmagalur and is understood to have acquired as much as 60 acres for the same.
Even as he consolidating his holdings over coffee estates, Siddhartha is also understood to be in various stages of raising as much as $100 million at his principal holding company.
“He has had discussions with PE funds including TA Associates among others. There has been interest from strategic players as well,” senior industry officials indicated to Business Standard.
“He has had discussions with PE funds including TA Associates among others. There has been interest from strategic players as well,” senior industry officials indicated to Business Standard.