Bira 91 Faces ₹11 Cr Legal Action from Glass Supplier HNGIL

B9 Beverages, the parent company of craft beer brand Bira 91, has received a new legal notice from glass manufacturer Hindusthan National Glass & Industries Ltd (HNGIL). The notice threatens civil and criminal action against Bira 91 over allegedly unlifted bottle inventory, demanding outstanding dues totaling ₹11.19 Cr. This development underscores the mounting financial and operational challenges confronting the popular Indian craft beer producer.

HNGIL, in its notice dated June 5, asserts that over 51.42 Lakh customised glass bottles, manufactured exclusively for Bira 91, remain stored at its facilities. The glassmaker estimates the value of this inventory at more than ₹7 Cr and claims B9 Beverages has failed to make payments and lift the stock despite repeated requests.

The legal communication was addressed to B9 Beverages’ board of directors, with copies sent to several key investors. These investors include prominent firms such as Peak XV Partners, Sofina, BlackRock, and Kirin Holdings, highlighting the gravity of the dispute and its potential implications for the company’s financial backers.

According to HNGIL, the dispute originates from purchase orders for customised glass bottles placed by B9 Beverages in 2024. The glass manufacturer alleges that Bira 91 concealed its ongoing corporate insolvency resolution process (CIRP) while placing these orders, which were ostensibly backed by bank guarantees.

HNGIL further claims that while bank guarantees worth ₹3.91 Cr were encashed, a substantial portion of the dues remains unpaid. The company states that Bira 91 had repeatedly assured payments and inventory collection, but these commitments were not honored, leading to the current legal escalation.

The total demand of ₹11.19 Cr from HNGIL encompasses outstanding dues, accrued interest, storage charges for the unlifted inventory, and mould charges. The glassmaker has issued a 15-day ultimatum to B9 Beverages Ltd, requiring the company to settle the dues and provide a definitive schedule for lifting the stored bottles.

HNGIL warned that failure to meet these demands within the stipulated timeframe would result in the initiation of legal proceedings. The company highlighted that the unlifted stock has created significant operational burdens, including blocked warehouse space, tied-up working capital, and additional storage and handling costs.

This latest notice follows a prior instance just a month earlier, where HNGIL reportedly sought recovery of more than ₹8 Cr from Bira 91. That demand was also based on alleged payment and contractual defaults, indicating a pattern of disputes between the two entities.

Bira 91’s Mounting Financial Difficulties

Bira 91, co-founded by Ankur Jain in 2015, quickly established itself as one of India’s pioneering craft beer brands. The company attracted substantial investment, securing over $200 Mn from investors including Peak XV Partners, Sofina, and Kirin Holdings, which facilitated its expansion across India and into international markets.

At its peak, Bira 91 was positioned as a formidable challenger to established beer brands, known for its premium products, distinctive branding, and strong appeal to urban consumers. The brand aimed to disrupt the market with its unique offerings and marketing strategies.

However, Bira 91 has encountered significant financial and operational challenges over the past two years. In 2025, the company attributed disruptions to a corporate name change, which involved removing “private” from its name to become a public company. This transition reportedly led to licensing issues across various states, forcing a temporary halt in its manufacturing and sales operations.

The operational setbacks resulted in a substantial write-off of inventory, amounting to approximately ₹80 Cr, and prolonged delays in vendor payments. Founder Ankur Jain publicly acknowledged the company’s financial strain, stating that its total liabilities stood at around ₹300 Cr as of May 2025.

Reports have consistently emerged detailing deepening troubles for Bira 91, including delayed employee salaries, ongoing vendor disputes, disagreements among investors, and various legal battles concerning company assets. These issues paint a picture of a company struggling to maintain stability.

Last year, reports indicated that investors and lenders were actively seeking greater control over specific segments of the business. This move was reportedly driven by concerns regarding the company’s governance and overall financial management, suggesting a loss of confidence in the existing leadership.

Amidst its severe financial distress and production hurdles, investors are believed to have injected approximately ₹400 Cr to safeguard the craft beer brand. These funds were reportedly conditioned on the resignation of CEO Ankur Jain, though the ultimate outcome and fructification of these plans remain uncertain.

The ongoing legal actions and internal strife highlight the critical juncture Bira 91 faces. The resolution of HNGIL’s demands and the broader investor-management disputes will be pivotal in determining the company’s future operational viability and market position.