Bira 91 Faces Fresh Insolvency Threat Over ₹11.8 Cr Dues

Craft beer maker Bira 91 is facing a fresh insolvency threat, with glass manufacturer Hindusthan National Glass & Industries Ltd (HNGIL) serving a default notice over alleged unpaid dues. 

HNGIL has issued the notice under Section 8 of the IBC to B9 Beverages Ltd, the parent company of Bira 91, seeking ₹11.77 Cr for customised glass bottles manufactured against confirmed purchase orders but allegedly not lifted by the brewer, according to a PTI report. 

The notice gives B9 Beverages 10 days to clear the dues or bring on record evidence of a pre-existing dispute. If it fails to do so, HNGIL can approach the NCLT under Section 9 of the IBC to initiate a corporate insolvency resolution process (CIRP). 

The latest development follows a legal notice issued by HNGIL in May, asking B9 Beverages to clear its dues and provide a schedule for lifting the bottles. HNGIL said the bottles were manufactured specifically for Bira 91 and could not easily be sold to other buyers. 

The dispute surfaced publicly in June, when HNGIL alleged that more than 51 Lakh customised bottles worth over ₹7 Cr remained stored at its facilities.

The glassmaker further alleged that significant dues remained unpaid despite it encashing bank guarantees worth ₹3.91 Cr. It claimed that the brewer repeatedly assured it that payments would be made and the inventory lifted but failed to honour those commitments.

At the time, HNGIL claimed outstanding dues of ₹11.19 Cr, including interest, storage, and mould charges. It also said the unlifted stock had blocked warehouse space and working capital while adding to its storage and handling costs. 

Bira’s Mounting Troubles

The fresh insolvency threat comes as Bira 91 continues to grapple with a severe financial crisis. The company has reportedly been out of production since September 2025 amid mounting debt and outstanding employee and vendor dues.

The brewer’s troubles can be traced partly to the conversion of B9 Beverages from a private company into a public company after it crossed the limit of 200 shareholders prescribed under the Companies Act, 2013.

The change required the company to secure fresh excise licences, permits, and label registrations across states. From January to June 2023, Bira 91 was unable to sell its products legally as state authorities treated B9 Beverages Ltd as a new entity and required fresh approvals. 

The regulatory disruption hurt sales and forced the brewer to write off inventory worth around ₹80 Cr, while also contributing to delays in vendor payments. 

The crisis subsequently led to mounting debt and employee and vendor dues, besides triggering a battle between founder Ankur Jain and the company’s investors over control of the business. B9 Beverages’ debt and other liabilities have reportedly risen to around ₹1,000 Cr. 

Last month, Jain stepped down from B9 Beverages’ board and relinquished executive control and ownership of his family’s stake as part of a settlement with investors and lenders. Anicut Capital subsequently took control of Jain and his family’s over 17% stake and is expected to lead the company’s restructuring.

Bira 91 is now reportedly seeking recapitalisation to clear statutory, employee, and vendor dues and restart operations.

Founded by Jain in 2015, Bira 91 emerged as one of India’s earliest craft beer brands. The company raised more than $200 Mn over the years, while its revenue crossed $100 Mn in FY23.

However, its net loss widened more than 68% YoY to ₹748 Cr in FY24, while operating revenue declined 17.1% to ₹638 Cr.

B9 Beverages is backed by Peak XV Partners, Sofina, and Japan’s Kirin Holdings. Its lenders include Anicut Capital and the family office of Hero Corporate Services.

In October last year, Anicut Capital and Kirin Holdings took control of The Beer Cafe after B9 Beverages defaulted on loans against which it had pledged shares of the cafe chain’s parent, Better Than Before. The Beer Cafe operates 42 pubs across the country.

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