Bira 91 in turmoil after name change, faces financial crisis, employee revolt

A seemingly minor legal name change by the parent company of the Bira 91 beer brand has set off a chain of regulatory and operational setbacks.

According to The Economic Times, more than 250 employees of B9 Beverages — the company behind Bira 91 — have petitioned for the removal of founder Ankur Jain, alleging governance lapses, delayed salaries, and unpaid vendor dues.

Also Read: Beer industry added ₹92,324 cr to India's GDP in 2023

Rise of a craft beer icon

Founded in 2015 by Ankur Jain, Bira 91 quickly emerged as the poster child of India’s craft beer revolution, combining youthful appeal with aggressive distribution.

At its peak, Bira 91 was India’s fastest-growing beer brand. As reported by Financial Express, the company recorded Rs 824 crore in revenue for FY2023, selling 9 million cases across 550 towns and 18 countries.

Beyond its financial success, Bira 91’s rise was cultural. Its distinctive bottle designs, witty campaigns, and strong pub presence made it a household name among urban millennials. The 2022 acquisition of The Beer Café further expanded its footprint into restaurants and bars.

Name change sparked chaos

The past 18 months, however, have been turbulent. The company has faced mounting financial strain, bureaucratic delays, and internal unrest.

Trouble began when B9 Beverages altered its legal name from B9 Beverages Private Limited to B9 Beverages Limited in 2023/24, dropping the word “Private.”

What seemed like a minor step towards IPO preparation quickly spiralled into chaos. Since alcohol is regulated at the state level in India, with each state enforcing its own excise laws, licensing rules, and labelling norms—the change effectively made Bira a “new entity” in the eyes of regulators.

The result: A regulatory avalanche involving new label registrations, fresh product approvals, and a near-total freeze on sales for four to six months.

Also Read: Telangana liquor stalemate puts domestic industry on the rocks

Financial fallout

The administrative delays proved costly. Though the name change looked trivial, it led to months of halted sales and forced B9 Beverages to write off nearly Rs 80 crore worth of unsold stock while reapplying for approvals, ET reported.

Revenue fell 22 per cent to Rs 638 crore, net losses surged to Rs 748 crore, and annual sales volumes dropped to 6-7 million cases in FY24 from 9 million the previous year.

Founder Ankur Jain acknowledged the disruption in an interview with The Financial Express, “Due to the name change, there was a four- to six-month cycle where we had to re-register labels and re-apply across states, which resulted in literally no sales for several months despite demand.”

According to ET, production stopped altogether in July. Prospective investor BlackRock — initially in talks to inject Rs 500 crore in debt — later withdrew.

Meanwhile, Reuters reported that Bira 91 is seeking to raise $132 million, including Rs 50 million in equity from Global Emerging Markets (GEM) and Rs 82 million through structured credit.

Employee backlash

The mounting challenges culminated in a petition by more than 250 employees addressed to the company’s board, top investors (including Kirin Holdings and Peak XV Partners), and lender Anicut Capital.

They demanded Jain’s removal, citing poor corporate governance, lack of transparency, and severe payment delays.

Employees told ET that salaries have been pending for up to six months, with reimbursements delayed since November 2024. TDS for over 50 employees from the previous fiscal year and provident fund payments (last made in March 2024) remain unsettled.

Pending dues for more than 500 current and former staff total around Rs 50 crore. Workforce strength has plunged from over 700 last year to just above 260 now.

Also Read: Why Bengaluru may soon face a beer shortage

Founder responds

In response, Jain told ET that the company had not received any formal communication from employees or shareholders but acknowledged persistent overdue payments.

"These range between three and five months, depending on the level of employees, and include a delay in payments of tax dues as well,” he was quoted by ET.

Jain described the past 18 months as particularly challenging due to “significant business disruptions” caused by the name change, liquor policy shifts and delays in fundraising.

He added that Bira 91 has restructured operations, cutting headcount by nearly half and concentrating on fewer states, to improve margins and restore stability.