B9 Beverages Ltd, the parent company of India’s popular craft beer brand Bira 91, recently faced a major financial setback due to what seemed like a simple administrative change. In preparation for its planned IPO in 2026, the company dropped “Private” from its name, transitioning from B9 Beverages Private Ltd to B9 Beverages Ltd. However, this move triggered an extensive re-registration process across multiple states, disrupting sales and resulting in an Rs 80 crore inventory write-off.
The impact of this disruption was severe, causing a 68% increase in net losses for FY24. B9 Beverages reported a widened loss of Rs 748 crore, surpassing its total revenue of Rs 638 crore, which itself had declined by 22% compared to the previous fiscal year. The company attributed these losses to both the re-registration delays and evolving state policies affecting key markets such as Delhi NCR and Andhra Pradesh.
Disruptions and Market Challenges
The name change required Bira 91 to re-register its labels and apply for fresh approvals in multiple states, a process that took between four and six months. During this period, the brand saw a significant drop in availability, resulting in lost sales despite continued consumer demand.
Founder Ankur Jain highlighted that this transition coincided with policy shifts in critical markets, further impacting their sales. As a result, Bira 91’s sales volume declined to 6-7 million cases in FY24, down from nine million cases in FY23. This decline was compounded by intensifying competition from both local craft beer brands and global brewers introducing premium offerings in India.
Financial Stability and Industry Concerns
Beyond the immediate financial loss, B9 Beverages’ auditors raised concerns about the company’s long-term viability. The latest financial report revealed a negative cash flow of Rs 84 crore and accumulated losses of Rs 1,904 crore. These figures led auditors to warn of a “material uncertainty” regarding the company’s ability to sustain operations in the long run.
Despite these setbacks, Bira 91 remains optimistic about its future. The company anticipates a turnaround, with expectations of achieving operational profitability in the upcoming quarters.
“We had to write off Rs 80 crore worth of products due to the name change, but growth is back since the third quarter. We expect to turn an operating profit by next quarter and remain on track for our planned capital raise by 2026,” the company stated.
India’s Expanding Beer Market and Global Interest
While Bira 91’s struggles highlight the challenges of scaling up in the craft beer industry, India’s beer market continues to attract significant global investment. United Breweries recently announced a Rs 750 crore investment in a new brewery in Uttar Pradesh, marking its first major expansion in a decade. Similarly, Carlsberg has signaled plans to ramp up investments in India in 2025, recognizing the country’s growing potential.
Industry experts caution that craft beer brands must strike a balance between expansion and maintaining their niche appeal. Vinod Giri, Director General of the Brewers Association of India, emphasized that over-expansion could dilute the uniqueness that makes craft beers appealing. “The key to success for craft brands is maintaining their distinct taste profiles while scaling at a sustainable pace,” he advised.
As Bira 91 works toward its 2026 IPO, it faces the challenge of recovering from its recent financial setback while navigating an increasingly competitive market. The brand’s ability to balance growth with financial stability will be crucial in determining its long-term success.
