Brands
Bira 91 hit by Rs 11.77 crore default notice, HNGIL plans NCLT move
Glassmaker alleges B9 Beverages failed to pay for customised bottles made for its beer
MUMBAI: Glass manufacturer Hindusthan National Glass and Industries Ltd (HNGIL) has initiated insolvency proceedings against B9 Beverages Ltd, the maker of Bira 91 beer, over an alleged payment default of Rs 11.77 crore.
HNGIL has issued a demand notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), marking a formal step before a potential application to the National Company Law Tribunal (NCLT) to commence the Corporate Insolvency Resolution Process (CIRP).
HNGIL, an operational creditor of B9 Beverages, alleges that the brewer failed to pay for customised glass bottles manufactured against confirmed purchase orders. The dispute involves more than 51 lakh 650 ml amber bottles produced specifically for Bira 91.
The bottles were ordered through three purchase orders issued by B9 Beverages in June and September 2024. They remain stored at HNGIL’s facilities in Bahadurgarh, Haryana, Puducherry and Rishra, West Bengal.
According to the demand notice, the bottles carry B9 Beverages’ branding and were manufactured to the company’s technical specifications. HNGIL said the customised inventory cannot readily be sold to another buyer, leaving the glassmaker with additional warehousing costs and blocked working capital.
The Rs 11.77 crore claim includes Rs 7.03 crore for the manufactured bottles and Rs 1.12 crore in storage charges. HNGIL has also sought contractual interest, after accounting for a credit balance of Rs 13.72 lakh in B9 Beverages’ account.
The latest action follows a legal notice issued by HNGIL on May 6, 2026. The company had asked B9 Beverages to clear the outstanding amount and provide a firm schedule for taking delivery of the entire stock within 15 days.
HNGIL said neither the payment nor a delivery schedule was subsequently provided.
HNGIL chief strategy officer Suraj Mehta said the company issued the IBC demand notice following the earlier legal notice concerning commercial and contractual matters. He added that HNGIL remained open to resolving the dispute, but declined to comment further as the matter is under legal consideration.
B9 Beverages now has 10 days from receiving the demand notice to make the payment or formally raise a pre-existing dispute. If the default is not resolved within that period, HNGIL may approach the NCLT under Section 9 of the IBC seeking commencement of insolvency proceedings.
The dispute adds to the financial pressures facing B9 Beverages. Bira 91 has reportedly been out of production since September 2025, while the company’s debt is estimated at around Rs 1,000 crore.
Last month, founder Ankur Jain stepped down from the board and all executive positions at B9 Beverages, along with members of his family, following a settlement with the company’s lenders and investors.
Anicut Capital, which had a lien over the company’s shares, is understood to be leading the restructuring effort alongside existing investors Peak XV Partners and Kirin Holdings.
The recapitalisation plan is aimed at addressing statutory obligations, employee dues and vendor payments before production can restart.
Meanwhile, Varun Beverages, through its newly formed step-down subsidiary KIVA Spirits, is among the companies reportedly interested in acquiring B9 Beverages.
For HNGIL, the immediate issue is more tangible: millions of customised bottles sitting in warehouses, tying up capital and adding costs. For B9 Beverages, the demand notice adds another pressure point as it works to restructure its finances and find a path back to production.
