New Delhi: B9 Beverages, the parent company of popular craft beer brand Bira 91, is facing a financial crisis. The company is struggling to pay salaries to its employees and vendors, and is also dealing with tax troubles.
Bira 91’s parent company, B9 Beverages, is facing significant financial troubles, including a massive tax liability. The Maharashtra Value Added Tax (MVAT) department has directed distributors to redirect pending payments to tax authorities instead of B9 Beverages, citing outstanding VAT dues of Rs 26.38 crore in Maharashtra alone.
The company’s financial struggles don’t end there. B9 Beverages also owes- Rs 7 crore in Madhya Pradesh – Rs 4.8 crore in Delhi – Rs 4.7 lakh in Himachal Pradesh.
The company faces difficulties in meeting vendor payments and has delayed employee salaries by one to two months. Industry estimates suggest that B9 Beverages owes nearly Rs 700 crore in vendor payments and state taxes, with unpaid dues of approximately Rs 500 crore to distributors, suppliers, and private breweries .
The company’s financial performance has also taken a hit, with revenue from operations falling sharply to Rs 638.5 crore in FY24, down from Rs 824.3 crore in FY23. Losses widened significantly to Rs 748.8 crore from Rs 445.4 crore in the previous year.
B9 Beverages aims to go public in 2026, but faces mounting pressure to stabilize its operations and clear its tax obligations. The financial crisis at B9 Beverages has raised concerns about the future of the company and its popular beer brand, Bira 91. The company has been struggling to compete with larger beer brands in the market, and its financial troubles may make it harder for it to stay afloat.
B9 Beverages has reportedly sought financial assistance from investors to help it overcome its financial crisis. However, it remains to be seen whether the company will be able to recover from its current financial troubles.