Bira 91, once a leading name in India’s craft beer market, has faced serious challenges—not because demand dropped, but due to regulatory complications triggered by a legal name change.
As part of its IPO plans, the company changed its name from B9 Beverages Private Limited to B9 Beverages Limited. While this seemed like a routine step, India’s state-wise alcohol regulations required the company to reapply for licenses, approvals, and registrations across multiple states. This process took months, effectively stopping sales and distribution in key markets.
The impact was immediate. Shelves went empty, while beer worth over ₹80 crore remained unsold, with some stock even expiring. Production slowed down, and competitors quickly filled the gap, taking over shelf space and tap lines.
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Financially, the company took a major hit. In FY24, it reported revenue of ₹638 crore but a net loss of ₹748 crore. Sales volumes dropped from around 9 million cases to 6–7 million cases, and total losses crossed ₹2,100 crore. Cash flow issues and rising liabilities further added to the pressure.
The situation also led to internal unrest. In 2025, over 250 employees wrote to the board and investors, raising concerns about delayed salaries, unpaid dues, and lack of transparency. Reports suggested salaries were delayed for months, and production was even halted at one point. The company also reduced its workforce significantly, cutting staff from over 700 to around 260 employees.
By 2026, the issue became public, with more than 40 employees staging a peaceful protest over unpaid salaries and dues.
Despite the crisis, Bira 91 is trying to recover by raising funds through a rights issue and focusing on more profitable markets and products. However, whether these steps will bring stability and rebuild trust remains uncertain.
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