HNGIL warns Bira 91 of insolvency action over Rs 11 crore payment dispute

MUMBAI: Hindustan National Glass & Industries (HNGIL) has escalated its dispute with B9 Beverages, warning that it may initiate insolvency proceedings against the brewer if outstanding dues of Rs 11.19 crore are not cleared.

The glass manufacturer has written directly to B9 Beverages’ investors, seeking their intervention in resolving the matter and highlighting what it describes as a growing financial and operational burden caused by unpaid dues and uncollected inventory.

Copies of the June 4 letter were sent to major investors, including Peak XV Partners, Sofina, BlackRock, Tiger Pacific Capital, Anicut Capital, Sixth Sense Ventures, MUFG Intime India and Kirin Holdings.

At the heart of the dispute are 51.42 lakh customised glass bottles manufactured specifically for Bira 91, which HNGIL claims remain stored at its facilities. The company says the inventory has occupied valuable warehouse space while generating additional handling and storage costs.

The latest communication follows a legal notice issued by HNGIL on May 6 demanding payment of Rs 11.19 crore and immediate lifting of the stock. According to the company, if no credible resolution emerges, it may pursue recovery proceedings, seek damages and explore remedies under the Insolvency and Bankruptcy Code.

Despite the warning, HNGIL indicated that it remains open to a negotiated settlement. In its letter, the company said its preference was for an amicable and commercially reasonable resolution and urged investors to help facilitate discussions.

The correspondence also sheds light on B9 Beverages’ current financial situation. According to HNGIL, B9 Beverages founder and chief executive officer Ankur Jain responded to the legal notice by stating that the company is undergoing a recapitalisation process expected to conclude during the current financial quarter.

According to HNGIL, B9 Beverages indicated it would require additional time and planned to lift the contracted stock after production resumes in the following quarter.

The dispute arrives at a difficult period for the brewer. Once one of India’s fastest-growing craft beer brands, Bira 91 has faced mounting operational and financial challenges in recent years. Industry sources indicate that the company’s operations have remained paused since the third quarter of FY26, while fresh capital has largely remained absent since April 2024, apart from a rights issue completed in June 2025.

Financial performance has also come under pressure. According to data from business intelligence platform Tofler, B9 Beverages reported revenue from operations of Rs 554.8 crore in FY24, a decline of 31.5 per cent from Rs 810.1 crore a year earlier. Net losses widened significantly to Rs 643.5 crore from Rs 391.4 crore during the same period.

The company’s troubles have been compounded by operational disruptions stemming from its corporate restructuring. Following its name change from B9 Beverages Pvt Ltd to B9 Beverages Ltd in preparation for a potential public listing, the company was required to reapply for excise licences across several states, impacting distribution and sales.

For now, HNGIL has left the door open for negotiations. However, with investors now drawn into the conversation and the possibility of insolvency proceedings looming, the dispute has moved beyond a routine supplier disagreement and into a high-stakes test of Bira 91’s efforts to stabilise its business and restore confidence among stakeholders.