Due to its name change, B9 Beverages Ltd, the parent company of the modern beer brand Bira 91, faced an extreme financial setback. It cost the company around ₹80Cr, and the sales got stuck instead of an extreme demand. Let’s unfold this shocking story in this article.
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B9 Beverages Ltd’s Name Change For IPO 2026.
Company B9 Beverages Ltd which produces modern beer, under the name BIRA 9I, was set to list the company for a 2026 Initial public offering (IPO). To appear in the exchanges the company revised its name to B9 Beverages Ltd from B9 Beverages Private Ltd. According to reports, the company’s decision led to major financial crisis.
Name Changes Consequenced A Financial Setback.
This name change turned out to be very costly for the firm as it was forced to write off ₹80 crore in inventory and halt sales for a few months, according to an Economic Times report. Moreover, the company’s sales stopped for several months even after extensive demands.
Ankur Jain, the founder of B9 Beverages Ltd said, “Due to the name change, there was a 4-6 month cycle where we had to re-register labels and re-apply across states which resulted in literally no sales for several months despite demand for our products”.
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Losses Widened and Sales Declined.
Reports said This was due to compliance issues till it registered a new product label. As a result, its sales fell by 22% and its losses widened by 68% in the financial year 2023-24.
A Hindustan Times Report said that the company, which had said that beer needs high capital expenditure and working capital allocation to grow, planned the IPO to raise fresh funds for its growth plans.
The beer industry contributed ₹92,324 crore to India’s Gross Domestic Product (GDP) in 2023 alone, the report added.
B9 Beverages faced a net loss of ₹748 crore in 2023-24 and this loss surpassed even its total sales of ₹638 crore, according to the report.
BIRA’s Further Recovery Plans.
Instead of an unbelievable crisis in the company, the company’s plans and strategies indicate the recovery. The company expects a turnaround with operational profitability, by the next quarter. A company statement says, “We had to write off Rs 80 crore worth of products due to the name change, directly impacting our profitability. However, growth is back since the third quarter, and we expect to make an operating profit by next quarter and have enough scale and size to raise capital by 2026”.
Although craft beer brands like Bira 91, Simba, BeeYoung, and Kati Patang have contributed to the transformation of the Indian beer market, industry experts emphasize that to maintain their niche appeal, they must carefully manage their expansion tactics, according to a Startup Pedia report.
The Director General of the Brewers Association of India (BAI), Vinod Giri said, “The appeal of a different taste palate, whether wheat, dark lager, or craft, is rooted in its uniqueness. Their growth strategy should balance investor expectations with the rate of consumer adoption”
Bira 91 needs to strike a balance between rapid expansion and financial caution as it approaches its 2026 IPO in order to maintain long-term market relevance and profitability.
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