In a bid to address mounting financial pressures, B9 Beverages, the company behind popular beer brand Bira 91, is moving to sell one of its assets to clear pending employee salaries and provident fund dues.
Immediate Cash Needed for Employee Dues
Founder Ankur Jain has informed employees that the planned sale aims to raise immediate cash to meet critical obligations. According to sources cited by ET, Jain stated in a letter to staff members, "We have sent the proposal to key lenders and shareholders yesterday...and hopeful of timely consent."
The company's financial situation has become increasingly dire. Production has been halted since July, and the company reported a staggering net loss of Rs 748 crore in FY24, which exceeded its total revenue of Rs 638 crore. Volume sales dropped significantly to just 6-7 million cases during this period.
Investor Concerns and Employee Unrest
However, the proposed asset sale has raised questions among some of the company's investors. A senior executive at one of B9 Beverages' largest investors expressed uncertainty about the plan, telling ET anonymously, "We don't even know who the buyer is...is there a firm offer or term sheet."
The company's shareholders and lenders include prominent names such as Kirin Holdings of Japan, Anicut Capital, and Peak XV. While Jain declined to specify which asset is intended for sale, he confirmed the company has identified "various avenues to resolve dues for employees and recovery of business including sale of certain non-core assets."
The financial crisis has led to significant employee unrest. More than 250 staff members petitioned the board and shareholders last month calling for Jain's removal. They also sent an open letter to the Union government highlighting several issues:
- Unpaid salaries for over six months
- Arrears and reimbursements since November 2024
- Pending TDS for more than 50 employees
Path Forward Through Asset Sale
Jain emphasized the critical importance of the asset sale in his communication to employees. He wrote that "The sale of the asset will enable immediate solution to some critical areas, including employee provident fund (PF) dues, payroll for the bottom 50% of employees (including ex-employees) and resumption of business in key markets."
The company has yet to release its FY25 results, adding to the uncertainty surrounding its future prospects. The situation represents a significant challenge for what was once considered one of India's most promising beverage startups.
