Why Bira 91 staff are asking for their founder’s removal

Bira 91, one of India’s most recognisable craft beer brands, is facing an unprecedented employee revolt. More than 250 staff of its parent company, B9 Beverages, have petitioned to remove founder Ankur Jain, citing governance lapses, delayed salaries and unpaid vendor bills, The Economic Times reported.

The flashpoint was a seemingly minor legal change. In December 2022, the company altered its name from B9 Beverages Private Limited to B9 Beverages Limited. By removing the word “Private,” the firm triggered a wave of regulatory red tape. State governments treated the new entity as an entirely different company, forcing it to apply afresh for sales licences, label approvals and product registrations.

Investor D Muthukrishnan said in a post on X that “all hell then broke loose” after the change, describing it as “a procedural goof-up” that derailed one of India’s most celebrated start-up stories. He noted that global majors such as Diageo had avoided similar issues by retaining legacy names for their Indian subsidiaries.

The fallout was severe. NDTV reported that B9 Beverages had to write off Rs 80 crore in inventory while seeking approvals. Sales fell 22% in FY24, while net losses surged 68% to Rs 748 crore — surpassing its total revenue of Rs 638 crore. Production reportedly halted in July, and US fund manager BlackRock, which was in talks to provide Rs 500 crore in debt funding, is said to have pulled back.

For employees, the financial strain has meant salaries delayed by three to five months. In response to the petition, Jain acknowledged the overdues. “It is true that we have employee overdues that have been persisting. These range between three and five months, depending on the level of employees, and include a delay in payments of tax dues as well,” he told The Economic Times.

Jain said the past 18 months had been marked by “significant business disruptions” caused by the name change, shifting state liquor policies and delays in fundraising. He added that the company was restructuring operations, focusing on select states and working to improve margins.

The petition marks a rare case of employees directly challenging a founder’s leadership in India’s start-up sector. Whether shareholders back the demand remains to be seen, but the episode underscores how governance missteps can quickly destabilise even high-profile consumer brands.