Bira 91's Financial Woes: A Costly Name Change and Mounting Challenges

What Led to Bira 91’s Financial Struggles?

Bira 91 recently changed its official name from B9 Beverages Private Ltd to B9 Beverages Ltd to streamline its transition to a public company. However, this move led to unexpected financial setbacks:

✅ The name change required re-registering product labels across multiple states, disrupting sales and distribution channels.

✅ The company had to write off ₹80 crore worth of inventory due to halted sales.

✅ Sales plummeted by 22%, while losses surged 68% in FY 2023-24.

(Source: Hindustan Times- Read More)

Bira 91’s Outstanding Tax Liabilities

Bira 91 is burdened with substantial unpaid taxes across multiple states:

📌 ₹26.38 crore in Maharashtra VAT dues.

📌 ₹7 crore in Madhya Pradesh.

📌 ₹4.8 crore in Delhi.

📌 ₹4.7 lakh in Himachal Pradesh.

These tax burdens have caused:

❌ Delayed vendor payments, affecting supplier relationships.

❌ Employee salary delays of 1-2 months, raising workforce concerns.

(Source: Business Standard- Read More)

Insolvency Proceedings: A Major Threat

Adding to its troubles, Bira 91 is facing an insolvency plea filed by Devyani International Ltd over unpaid dues of ₹1.09 crore related to brand alliance and supply agreements.

The National Company Law Tribunal (NCLT) has concluded hearings.

A verdict is expected soon, potentially impacting Bira 91’s future operations.

(Source: Bar & Bench- Read More)

Strategic Moves Amid Challenges

Despite these financial woes, Bira 91 is implementing measures to regain stability:

✅ Acquisition of The Beer Café (2023): Expanding its retail footprint.

✅ Global Partnerships: Collaborating with international entities to enhance technology and streamline operations.

(Source: CNBC TV18- Read More)

Future Outlook: Can Bira 91 Recover?

With an impending NCLT ruling and growing financial pressure, Bira 91’s survival hinges on:

✔️ Financial restructuring to clear tax dues and improve liquidity.

✔️ Operational efficiency to mitigate further losses.

✔️ Strategic growth initiatives to regain market share and investor confidence.

The craft beer market is highly competitive, and Bira 91 must act swiftly to stabilize its position and restore investor trust.

FAQs on Bira 91’s Financial Crisis

🔹 What caused Bira 91’s financial losses?

The name change disrupted sales, leading to a ₹80 crore inventory write-off and revenue decline.

🔹 Is Bira 91 facing insolvency?

An insolvency plea has been filed, and the NCLT’s decision is pending.

🔹 How much tax does Bira 91 owe?

Bira 91 owes over ₹38 crore in outstanding tax liabilities across multiple states.

🔹 What steps is Bira 91 taking for recovery?

The company is focusing on partnerships, acquisitions, and operational improvements.

🔹 Can Bira 91 bounce back?

Recovery is possible if the company successfully restructures its finances and regains market trust.