Brands
Bira 91 founder Ankur Jain exits board, gives up stake in settlement with investors
B9 Beverages to be recapitalised as existing investors aim to revive operations within six months
NEW DELHI: The final pint has been poured on Ankur Jain’s leadership of Bira 91. The founder of B9 Beverages has stepped down from the company’s board and agreed to relinquish his ownership and executive powers as part of a settlement with institutional investors and lenders, bringing an end to a two-year dispute over the brewer’s future.
The agreement paves the way for a recapitalisation of the company by existing investors, who plan to restart operations over the next three to six months after production was halted amid mounting financial stress.
Ankur Jain told The Economic Times that he had stepped down from the board following the settlement. “I am thankful to everyone who has allowed us to create the Bira 91 brand, team members, investors and business partners,” Jain said. “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.”
According to people familiar with the negotiations, Jain and members of the promoter family have agreed to surrender all executive authority and their ownership in the company. In return, Jain will be released from personal liabilities linked to company borrowings, for which he had acted as guarantor.
The promoter family currently holds a 17.8 per cent stake in B9 Beverages, which will be transferred under the settlement.
The company has been grappling with a severe liquidity crunch, with debt estimated at around Rs 1,000 crore. Production has remained suspended as the brewer struggled to meet financial obligations.
Under the restructuring plan, fresh capital from existing shareholders and lenders will be used to settle statutory liabilities, employee dues and payments owed to vendors before operations gradually resume.
Among B9 Beverages’ backers are Peak XV Partners and Kirin Holdings, while lenders include Anicut Capital and Hero Corporate Services. People familiar with the matter also said both sides have agreed to withdraw all legal proceedings filed against each other as part of the settlement.
The brewer’s financial troubles have been attributed to a combination of factors, including regulatory disruptions following its conversion from a private limited company to a public limited company in preparation for a proposed initial public offering. The name change required fresh excise licences across multiple states, disrupting operations.
The company also faced pressure from heavy spending on marketing, employee costs, sponsorship deals and brewery expansion that outpaced demand.
Founded in 2015, Bira 91 emerged as one of India’s best-known craft beer brands, crossing $100 million in revenue in FY23 on the back of its wheat beer portfolio. With its founder stepping aside and investors taking control, the company is now betting that a financial reset can help put the brand back on tap.
