After ₹748 crore loss, Bira 91 fails to clear salaries, plans asset sale

B9 Beverages, the company behind the craft beer brand Bira 91, is moving to sell one of its assets to raise funds as it struggles to pay pending employee salaries and provident fund dues, The Economic Times reported.

The financially distressed brewer has been facing severe cash flow constraints, leaving over 250 employees without pay for more than six months and halting production since July. The proposed sale is aimed at generating “immediate cash” to stabilise the business and clear employee arrears.

In a letter to staff, founder and CEO Ankur Jain said a buyer had been identified and that the proposal had been sent to key lenders and shareholders for approval. Jain did not disclose the specific asset under negotiation but said the company was working with major investors including Kirin Holdings, Anicut Capital, and Peak XV Partners to secure their consent.

Jain told the publication that the company was exploring multiple options to restore financial stability, including the sale of non-core assets. The planned transaction, he said, would help address dues such as unpaid salaries dating back to November 2024, arrears, reimbursements, and pending tax deductions for more than 50 employees from the previous financial year.

In his letter, Jain said the proposed deal would “enable immediate solution to some critical areas, including employee provident fund (PF) dues, payroll for the bottom 50% of employees (including ex-employees) and resumption of business in key markets.”

Despite the assurances, the move has reportedly drawn scepticism from some investors, who questioned the lack of clarity around the identity of the buyer and the existence of a formal offer or term sheet.

The latest crisis follows a string of financial setbacks for B9 Beverages. The company posted a net loss of ₹748 crore in FY24, exceeding its revenue of ₹638 crore, with sales volumes dropping to around 6–7 million cases. Audit red flags and internal governance concerns have added pressure to the once high-flying brand that once symbolised India’s craft beer boom.

The asset sale, if completed, could offer temporary relief but may not resolve deeper structural issues in the company’s operations or its capital strategy. The outcome will likely depend on how quickly B9 Beverages can rebuild confidence among employees, investors, and distributors while restarting production.