Bira 91, India’s leading craft beer brand, suffered a massive ₹80 crore loss due to a corporate name change, disrupting sales and causing significant inventory write-offs. Parent company B9 Beverages Ltd, headquartered in New Delhi, faced operational delays, leading to a 22% drop in sales. Despite the setback, Bira 91 is proceeding with its IPO plans for 2026.
Bira 91, one of India’s most popular craft beer brands, has suffered a staggering ₹80 crore loss after a corporate name change triggered regulatory hurdles, stalling sales across multiple states. Parent company B9 Beverages Ltd, formerly B9 Beverages Pvt. Ltd, reported a ₹748 crore net loss for FY24, surpassing its total revenue of ₹638 crore.
How a Simple Name Change Became a Costly Disaster
The company’s name change, which may have seemed like a routine corporate move, forced Bira 91 to re-register its product labels across various states, causing severe delays in distribution. The key consequences included:
- A 22% drop in sales, with volumes plummeting from 9 million cases in FY23 to 6-7 million cases in FY24.
- ₹80 crore worth of unsellable inventory, resulting in a massive write-off.
- 4-6 months of operational delays, particularly in key markets like Delhi NCR and Andhra Pradesh, which contribute over a third of Bira 91’s total sales.
IPO Plans Still on Track for 2026
Despite the financial turmoil, Bira 91 is moving forward with its IPO plans in 2026, provided it meets crucial operational milestones. CEO Ankur Jain has confirmed the company’s commitment to its public listing, with Morgan Stanley advising on the pre-IPO process.
Key IPO Highlights:
- Target Date: 2026
- Financial Advisor: Morgan Stanley
- Funding Boost: Secured $25 million in external commercial borrowing from Kirin Holdings
A Lesson in Corporate Rebranding Risks
Bira 91’s losses serve as a cautionary tale for businesses navigating corporate rebranding in highly regulated industries like alcohol. The company’s struggles highlight the potential financial risks of regulatory delays that can cripple sales and operations.
As B9 Beverages works to recover from its ₹80 crore misstep, all eyes are on its ability to stabilize its market presence and restore investor confidence before the highly anticipated IPO in 2026.
