Major Stakeholders Move to Rescue Struggling Bira91 Brewer
Japan's Kirin Holdings, one of the largest shareholders in B9 Beverages, is spearheading joint discussions with stakeholders and creditors to implement a comprehensive restructuring of the popular beer brand Bira91. The move comes as the company navigates a severe funding crisis and growing employee unrest that has threatened the future of one of India's most prominent craft beer makers.
The Japanese beverage giant, which holds a significant 20.3% stake in B9 Beverages, has clarified that it has no plans to exit its investment despite the current challenges. Instead, the company is working collaboratively with other shareholders to revamp management, governance, and business strategy to help B9 overcome its financial difficulties and scale the Bira91 brand effectively.
Investor Pressure Mounts on Founder Leadership
Institutional investors collectively hold the largest stake in B9 Beverages at 28.6%, led by Peak XV Partners (formerly Sequoia India), alongside Sofina, Sixth Sense, MUFG Bank, Tiger Pacific, Mayfield, and GHIQF Mauritius. These major stakeholders are increasingly pushing for leadership changes as a condition for additional financial support.
According to sources familiar with the matter, several major institutional shareholders are considering removing Chief Executive Officer and founder Ankur Jain over concerns about his handling of the financially distressed company. Investors have made it clear that they are willing to inject additional funds into B9 Beverages, but only if Jain steps down from his leadership position.
The situation has escalated to the point where investors and lenders are preparing to send a formal request for an extraordinary general meeting. A lender to the company, speaking on condition of anonymity, revealed that a requisition for the EGM will be sent shortly once every large shareholder signs the request.
Legal Battles and Operational Challenges
The restructuring efforts come amid multiple challenges facing B9 Beverages. The company recently found itself in a legal battle after Kirin Holdings, alongside Anicut Capital—the largest lender to B9 Beverages—took control of Bira 91's The Beer Cafe, formerly a subsidiary of B9. The acquisition was made by claiming shares pledged by B9, according to filings with the Registrar of Companies.
B9 Beverages has challenged Anicut Capital's actions in the Delhi High Court, creating additional legal complications for the already struggling company. The craft beer maker is facing a multi-pronged crisis including declining revenues, delayed salary payments, and significant employee unrest.
The company's market presence has noticeably shrunk, with Bira91 products now available in only a few select markets compared to its previous nationwide distribution. This contraction reflects the severe financial constraints the company has been operating under in recent months.
In a recent development, lenders and investors—including Anicut Capital and Hero Enterprises' Sunil Munjal—have invoked shares in the company and related entities of B9 Beverages. This action has led to a reduction in founder Ankur Jain's shareholding, though Mint could not independently confirm his current stake percentage.
The promoters, including Ankur Jain and his family, previously held 17.8% of the total holding, but this has now decreased following the share invocations by lenders and investors.
Path Forward and Stakeholder Alignment
During a virtual meeting held in September, investors and lenders including Peak XV, Sofina, Sixth Sense Ventures, Anicut Capital, and Kirin Holdings reviewed the company's deteriorating situation. Most stakeholders indicated they would be willing to infuse fresh capital into the company, but only under the condition that Jain steps down from his leadership role.
The restructuring plan being discussed involves significant changes to the company's equity structure, with some of the existing debt likely to be converted into equity. This approach would provide immediate financial relief while giving stakeholders more direct control over the company's future direction.
Meanwhile, employee concerns continue to mount, with several staff members filing petitions to the board and investors regarding delayed salaries and governance issues. The beverage maker had previously undergone a restructuring exercise by focusing on fewer states, reducing fixed costs, and prioritizing gross margins over the past year.
B9 Beverages last raised $25 million via external commercial borrowings from Kirin Holdings in June 2024, highlighting the ongoing financial support from its major stakeholders despite the current challenges. The company continues to explore all available options to stabilize its operations and return to sustainable growth in the competitive Indian beer market.
