India: Brewer B9 Beverages facing internal turmoil as employees call for change in leadership

B9 Beverages, the company behind the craft beer brand Bira 91, is facing internal turmoil as more than 250 employees have called for a “change in leadership”. The employees have petitioned the company’s board and key investors, including Japan’s Kirin Holdings, Peak XV Partners, and its largest lender, Anicut Capital, seeking the removal of founder and CEO Ankur Jain from management, according to a report by The Economic Times.

The petition, submitted after a company-wide town hall in September, cites “corporate governance failure”, “lack of transparency”, and “delays in employee dues and salaries”. It also points to lawsuits filed by creditors, deteriorating financials, and pending vendor payments as reasons for demanding a new leadership structure, the news report said.

The news report quoted industry sources saying production at Bira 91’s facilities came to a standstill in July, adding to concerns about the company’s financial health. They also said that BlackRock, which had been in advanced discussions to invest ₹500 crore in B9 Beverages’ promoter group, withdrew from the deal.

The privately held company’s key board members include Jain, his mother, and his wife. As of June 2025, the Jain family held a 17.8 per cent stake, while Kirin Holdings remained the largest shareholder with 20.1 per cent.

Responding to queries, Jain denied awareness of any petition being submitted to shareholders or the board. He admitted, however, that production had been temporarily paused in September and said operations were expected to resume this month, The Economic Times reported.

Several employees said salaries had been delayed for up to six months, with reimbursements pending since November 2024. One employee claimed that tax deducted at source (TDS) had not been deposited for over 50 employees for the last financial year and for all employees in the current year. Another said that provident fund (PF) contributions had not been made since March 2024, the news report said.

Pending dues, comprising salaries and reimbursements for more than 500 employees, including those who have since left, reportedly total around ₹50 crore. The workforce has shrunk from over 700 employees last year to just about 260 now.

Amid the crisis, Bira is in talks to raise around $132 million in its biggest-ever fundraising effort, with New York-based investment group Global Emerging Markets (GEM) emerging as one of the key suitors.

According to term sheets reviewed by news agency Reuters, the company is seeking $50 million through equity and another $82 million via structured credit. Jain confirmed that Bira had received multiple term sheets for both debt and equity investments but declined to name the investors.

Funds from the proposed round will likely go toward working capital requirements and settling overdue payments. Jain said the company is also restructuring its sales and supply chain networks to stabilise operations.

Founded in 2015, Bira 91 quickly became a household name in India’s craft beer segment, which has grown alongside the country’s evolving drinking culture. However, the brand continues to operate in a highly regulated liquor market dominated by global giants such as AB InBev, Carlsberg, and Heineken, where Bira holds less than 5 per cent market share.

The company, valued at around $450 million two years ago, has raised $210 million to date from investors including Kirin Holdings and Peak XV Partners. But, as Bira faces mounting financial strain and employee unrest, its prospects now depend on how quickly it can resolve its internal challenges.