Major Investor Kirin Seeks Exit from Struggling Bira 91 Maker
In a significant development for India's craft beer industry, Japan's Kirin Holdings, the largest investor in B9 Beverages, is actively negotiating with founder Ankur Jain to exit the crisis-hit company behind the popular Bira 91 brand. Multiple sources familiar with the matter have confirmed these discussions to Economic Times, marking a dramatic shift in the company's investor landscape.
Kirin currently holds a 20.1% stake in B9 Beverages as of June 2025, positioning it ahead of founder Ankur Jain's 17.8% ownership. The Japanese beverage giant initially invested in 2021 with expectations of long-term partnership, but has since reconsidered its global strategy and is looking to divest certain alcoholic beverage assets.
Financial Troubles and Operational Challenges
The decision comes as B9 Beverages faces severe financial pressure following major business disruptions last year. The company's strategic move to change its legal name from 'B9 Beverages Private Limited' to 'B9 Beverages Limited' as part of IPO preparations triggered unexpected complications. This change required re-registration of products across all state excise departments, causing 4-7 months of operational disruption and forcing significant inventory write-offs.
Compounding these issues, the brewer has been struggling with high fixed costs after commissioning four breweries between 2015 and 2019. This infrastructure investment made it difficult for the company to adapt when competitors began aggressive pricing strategies, leading to a sharp decline in market position.
Mounting Losses and Investor Tensions
The financial results reflect these challenges starkly. B9 Beverages reported a net loss of Rs 748 crore in FY24 as sales plummeted 22% year-on-year to Rs 638 crore. While FY25 numbers remain unreleased, the company's debt burden has escalated to approximately Rs 1,000 crore, with existing investors showing reluctance to inject additional capital.
This financial strain has created tensions between the founders and several key investors, including Peak XV Partners (holding 14.6% stake), Sofina (6.4%), and debt investor Anicut Capital. The situation has become increasingly challenging as the company navigates one of the most difficult periods in its history.
Kirin's initial investment in January 2021 totaled approximately $30 million through a combination of debt and equity. The Japanese company later provided another loan alongside Tiger Pacific last year. As part of its exit strategy, Kirin has engaged EY to sell the debt it provided to B9 Beverages in two separate tranches.
Global Strategic Shifts and Market Context
Kirin's decision aligns with its broader global strategic rethink, which includes diversifying into the health and wellness sector. The company has recently put its Four Roses bourbon brand on the market for $1 billion and has been systematically exiting certain international ventures. This includes departing from a Chinese bottled water joint venture three years ago and later selling its stake in a brewery partnership in Myanmar.
Meanwhile, India's beer market continues to show promising growth, projected to reach Rs 802.5 billion by 2033, according to research firm Imarc. The market, valued at Rs 444.6 billion in 2024, is expected to grow at a compound annual growth rate of 6.72% between 2025 and 2033. This growth is driven by changing lifestyles, increasing brand consciousness around premium beers, and rising consumption among millennials during social and cultural events.
The current situation presents a critical juncture for B9 Beverages as it seeks to navigate these challenges while operating in a market that continues to show significant potential for expansion and innovation in flavor and packaging.
