Bira 91 Faces Financial Meltdown: Employee Unrest, Investor Takeover, and Mounting Losses

India’s homegrown craft beer pioneer Bira 91 is facing one of the toughest chapters in its decade-long journey. What once stood as a symbol of urban cool and innovation has now slipped into a spiral of financial and operational distress, threatening the company’s survival and testing investor patience.

In a major development, investors Kirin Holdings and Anicut Capital have effectively taken control of The Beer Café, one of Bira 91’s subsidiaries, after the company defaulted on loans backed by its shares. The Delhi High Court has temporarily halted the transfer of these pledged shares, but insiders say control has already shifted away from founder Ankur Jain and his management team.

Employees Left Waiting for Pay

The most visible casualty of this crisis has been Bira’s workforce. Over 250 current and former employees of B9 Beverages Ltd, Bira 91’s parent company, have lodged formal complaints with authorities and investors, alleging salary delays of up to seven months. Reports indicate tax deductions were made but not deposited, while provident fund and gratuity payments were also missed.

Frustration has now given way to distrust, with employees demanding a forensic audit and leadership change. For a company that once prided itself on vibrant culture and youthful energy, morale has hit an all-time low.

From Licensing Lapse to Financial Freefall

The troubles trace back to late 2023, when B9 Beverages was required to convert into a public company — a procedural shift that disrupted state-level liquor licenses. This regulatory bottleneck prevented the company from selling beer for months, leaving over ₹80 crore worth of unsold inventory in warehouses.

The impact was severe. Revenue in FY24 fell to around ₹638 crore, while losses surged to nearly ₹750 crore. Cumulative losses have now crossed ₹1,900 crore, forcing auditors to question the company’s ability to continue operations. A planned ₹500 crore fundraise failed to materialize, and Bira’s unlisted stock price has plunged nearly 70% in three years.

Investors Step In as Competition Rises

The investor takeover signals a breaking point. With financial discipline eroding, external control has become inevitable. Meanwhile, the Indian craft beer market has moved on — rival brands have filled distribution gaps left by Bira, capitalizing on its licensing disruptions and shifting consumer loyalty.

Bira’s workforce has shrunk from 700 to just over 250, and unpaid dues alone stand at around ₹50 crore. The company’s future now hinges on restoring investor trust, clearing employee payments, and regaining its place in an increasingly competitive segment.

The Hangover After the High

Bira 91’s story once embodied the optimism of India’s startup era — bold, creative, and disruptive. But today, it reflects a sobering reality: rapid growth without strong foundations can quickly turn into collapse.

Whether the brand finds a lifeline or fades into corporate memory will depend on how swiftly it rebuilds trust, leadership, and liquidity. For now, the taps are dry — and India’s most celebrated craft beer brand is fighting to survive its own hangover.