Bira 91 Founder Ankur Jain Exits Board Amid Rs 1000 Cr Debt Crisis

Ankur Jain, the founder of Bira 91, has stepped down from the board of B9 Beverages, relinquishing all executive powers and ownership to settle a two-year dispute. This move comes as the company faces a significant financial crisis, carrying approximately Rs 1,000 crore in debt.

The settlement ensures Jain is absolved of personal liabilities tied to loans he guaranteed. It also mandates the dropping of all legal proceedings between the involved parties, clearing a path for the company’s future.

The Terms of Exit

Jain’s exit resolves a protracted conflict with institutional shareholders and lenders.

The company, B9 Beverages, has suspended production amidst its substantial Rs 1,000 crore debt burden.

Existing investors, notably Peak XV Partners and Japan’s Kirin Holdings, are slated to recapitalize B9 Beverages.

Operations are anticipated to resume within the next three to six months following recapitalization efforts.

The promoter family, which held a 17.8 percent stake, will also cede their ownership in the company.

This recapitalization phase will focus on clearing statutory, employee, and vendor dues. The strategic move aims to stabilize the company and allow it to restart its brewing operations.

Bira 91’s Financial Brew

Bira 91 had reached a high point in FY23, recording $100 million in top-line revenue.

However, the company subsequently posted losses due to several factors, including a name change intended for an IPO.

Overspending on marketing and salaries, along with expensive sponsorships, contributed to the financial strain.

Brewery expansion that outpaced actual market demand further exacerbated B9 Beverages’ financial challenges.

The restructuring marks a critical juncture for B9 Beverages, signaling a comprehensive overhaul to navigate its severe financial headwinds and rebuild its market position.