Bira 91, the popular craft beer brand owned by B9 Beverages, is currently grappling with significant financial challenges, leading to delays in interest payouts and raising concerns about its overall liquidity.

• Mounting Losses: In FY24, B9 Beverages reported a net loss of ₹748 crore, a substantial increase from ₹445 crore in FY23. This downturn was exacerbated by a 22% decline in revenue, dropping to ₹638 crore from ₹824 crore the previous year.
• Operational Disruptions: A strategic decision to remove “Private” from the company’s name necessitated re-registration across multiple states, leading to a sales halt lasting several months. This move resulted in an estimated ₹80 crore loss and contributed to a negative cash flow of ₹84 crore.
• Tax Liabilities: The company faces significant tax dues, including ₹26.38 crore in Maharashtra, with additional liabilities in Madhya Pradesh, Delhi, and Himachal Pradesh. The Maharashtra VAT department has instructed distributors to redirect pending payments to tax authorities instead of B9 Beverages.

Impact on Stakeholders

• Employee Grievances: Employees have reported delays in salary payments and reimbursements, with some experiencing notice periods being cut short without due compensation.
• Vendor and Supplier Payments: The company reportedly owes approximately ₹700 crore to vendors and state tax authorities, leading to disruptions in supply chains and halted production due to unpaid dues.

Insolvency Proceedings: Devyani International, operator of brands like KFC and Pizza Hut in India, has filed an insolvency plea against B9 Beverages over unpaid dues amounting to ₹1.09 crore. The National Company Law Tribunal (NCLT) has scheduled a compliance hearing for March 7.

B9 Beverages aims to go public in 2026; however, the current financial turmoil poses significant hurdles. The company is reportedly seeking financial assistance from investors to stabilize operations and meet its obligations.Given the ongoing financial and legal challenges, stakeholders are advised to monitor the situation closely, as the company’s ability to recover remains uncertain.

Sources