Sat Oct 11 09:46:53 UTC 2025: **Summary:**
A minor legal name change (“Private” was removed) to the parent company of Bira 91 beer (B9 Beverages) in 2023/2024 has led to significant operational and financial difficulties. States banned the sale of Bira 91, treating the name change as a new entity, and demanded fresh approvals and licenses. This resulted in halted sales, inventory write-offs (Rs 80 crore), a 22% drop in sales, and a 68% increase in losses. The company reported a net loss of Rs 748 crore against revenue of Rs 638 crore for FY24. Over 250 employees have petitioned for the removal of founder Ankur Jain, citing governance issues, delayed salaries, and unpaid vendor bills. Production was halted in July, and a potential investment of Rs 500 crore from BlackRock fell through. Jain acknowledged overdue employee payments and attributed the issues to the name change, liquor policy shifts, and fundraising delays, noting the company is trying to restructure.
**News Article:**
**Bira 91 Hit by Crisis: Name Change Triggers Sales Ban, Employee Revolt**
**New Delhi, India** – A seemingly minor legal name change has plunged B9 Beverages, the parent company of popular craft beer brand Bira 91, into a major crisis. The company’s decision to drop “Private” from its name in 2023/2024 triggered a cascade of regulatory hurdles, leading to sales bans in multiple states and a drastic financial downturn.
According to sources, state authorities began treating the newly named “B9 Beverages Limited” as a separate entity, demanding fresh approvals, licenses, and product registrations for all Bira 91 variants. This resulted in a months-long sales halt and a significant loss of revenue.
The financial impact has been severe. The company wrote off an estimated Rs 80 crore in inventory and reported a staggering Rs 748 crore net loss against a revenue of Rs 638 crore for the financial year 2023-24. Sales plummeted by 22%, while losses soared by 68%.
Adding to the company’s woes, over 250 employees have reportedly petitioned for the removal of founder Ankur Jain, citing governance issues, delayed salaries (ranging from three to five months), and unpaid vendor bills. Production was reportedly halted in July, and a potential Rs 500 crore debt investment from BlackRock has been withdrawn.
“A procedural goof-up has led to [the] whole company being collapsing,” tweeted investor D. Muthukrishnan, drawing a parallel to Diageo India’s decision to retain the United Spirits name to avoid similar disruptions.
While acknowledging overdue employee payments, Jain attributed the crisis to the name change, liquor policy shifts, and fundraising challenges. He stated that the company is working to restructure operations and improve margins.
The future of Bira 91, once a rising star in the Indian craft beer market, now hangs in the balance as it navigates these significant operational and leadership challenges.
First Piper 