Ankur Jain, founder of B9 Beverages, has stepped down from the company's board and agreed to relinquish all executive powers and ownership, marking a significant leadership transition for the maker of Bira 91 craft beer.
According to The Economic Times, the move is part of a settlement that resolves a two-year dispute between the founder, institutional shareholders and lenders as the debt-laden company prepares for recapitalisation and a potential return to operations.
Confirming the development to The Economic Times, Jain said: "I have stepped down from the B9 Beverages board."
Reflecting on his exit, he added: "I am thankful to everyone who has allowed us to create the Bira 91 brand, team members, investors, business partners. We ran into rough weather in the last two years. However, with this resolution, the business will enter a new phase of growth, a phase in which I will be cheering for the company and the brand from the sidelines."
Settlement reshapes leadership and ownership
According to people familiar with the settlement negotiations cited by The Economic Times, Jain and members of the promoter family will surrender all executive powers within the company.
In return, Jain will be absolved of personal liabilities related to the business. The settlement also includes the promoter family's decision to give up its ownership stake.
The promoter family currently holds 17.8% of B9 Beverages.
People familiar with the matter also said both sides have agreed to withdraw all legal proceedings initiated against each other. Settlement agreements were signed on Tuesday.
Financial distress prompts restructuring
The leadership transition comes as B9 Beverages navigates a severe financial crisis.
According to The Economic Times, the company has suspended production and accumulated debt of approximately ₹1,000 crore. Jain had personally guaranteed some of those borrowings.
The company is now expected to undergo a recapitalisation backed by existing investors, with plans to restart operations over the next three to six months.
According to people cited in the report, the recapitalisation process will focus on settling:
- Statutory dues
- Employee dues
- Vendor dues
The objective is to resume business operations within the next six months as new shareholder funding and lender support are put in place.
Investors and lenders prepare next phase
B9 Beverages counts Peak XV Partners and Kirin Holdings among its investors.
The company has also borrowed from lenders including Anicut Capital and the family office of Hero Corporate Services.
According to The Economic Times, Peak XV Partners, Anicut Capital and Hero Corporate Services declined to comment. Kirin Holdings said it had no information to share regarding the matter.
A decade of building the Bira 91 brand
Jain described the company's journey as a milestone for India's craft beer industry.
"Over the last 10 years, the B9 team built the first 'Imagined in India' brand in the beer category," he told The Economic Times.
His departure follows comments made in December, when he told the publication he was prepared to step aside if it helped resolve the company's governance challenges.
Business prepares for revival
The Economic Times reported that B9 Beverages' financial difficulties were driven by several factors.
Among them were regulatory disruptions following the company's conversion from B9 Beverages Pvt Ltd to B9 Beverages Ltd in preparation for a planned initial public offering. The name change required fresh excise licence applications across multiple states.
The report also cited:
- Higher-than-expected marketing expenditure.
- Rising employee salary costs.
- Expensive sponsorship agreements.
- Brewery expansion that outpaced market demand.
At its peak, Bira 91 generated $100 million in revenue in FY23, establishing itself as one of India's most recognised craft beer brands, particularly in the wheat beer category.
The leadership transition and recapitalisation now mark the beginning of a new phase for the company as investors and lenders work towards restoring operations and stabilising the business.