India: Deb-ridden brewer B9 Beverages pitches asset sale

Debt-ridden craft beer maker B9 Beverages founder Ankur Jain informed employees on November 6 that he has found a buyer for one of the company's assets that would help to inject "immediate cash" into the company for clearing pending salaries and provident fund dues, the Economic Times reported.

"We have sent the proposal to key lenders and shareholders yesterday...and hopeful of timely consent," Jain said in a letter to the employees, a copy of which was seen by ET.

Jain confirmed sending the letter but declined to identify that asset that is being planned for sale. "The company has identified various avenues to resolve dues for employees and recovery of business including sale of certain non-co ..

Jain confirmed sending the letter but declined to identify that asset that is being planned for sale. "The company has identified various avenues to resolve dues for employees and recovery of business including sale of certain non-core assets," he told ET.

Key shareholders and lenders of the maker of craft beer brand Bira 91 include Japan's Kirin Holdings, Anicut Capital and Peak XV.

However, two senior executives at the investing firms questioned the proposed asset sale. "We don't even know who the buyer is...is there a firm offer or term sheet," said an executive at one of the company's largest investors, asking not to be named.

ET was the first to report on October 10 that more than 250 employees of B9 Beverages had moved a petition to the board and shareholders last month seeking Jain's ouster. The employees later wrote an open letter to the Union government over unpaid salaries for over six months besides arrears and reimbursements from November 2024, with TDS pending for the last financial year for over 50 employees.

Production at B9 Beverages has been halted since July this year. The company incurred a ₹748-crore net loss in FY24, surpassing its total revenue of ₹638 crore during the year, as volume sales declined to 6-7 million cases. The company has yet to file FY25 earnings.

Jain's letter states that "the sale of the asset will enable immediate solution to some critical areas, including employee provident fund (PF) dues, payroll for the bottom 50% of employees (including ex-employees) and resumption of business in key markets."