Bira

Business Overview:

Company Name and Legal Structure: B9 Beverages Private Limited, commonly known by its flagship brand BIRA 91, is an unlisted private company incorporated on May 28, 2012. It began operations with the "Bira 91" brand in 2015, acquiring the business from Cerana Beverages Private Limited.

Core Business Activities and Offerings: BIRA 91 is a leading player in India's craft beer and flavored beer market. Its core business involves:

Brewing & Manufacturing: Producing a diverse range of beers, including: Flagship Beers: Bira 91 White (wheat ale), Bira 91 Blonde (lager), Bira 91 Light, Bira 91 Strong. Craft & Flavored Beers: A rotating lineup of limited-release and experimental beers, often featuring unique flavor profiles. Hard Seltzer & Cider: Expansion into related alcoholic beverage categories, such as "Hill Station Hard Cider Ale" and hard seltzers. The Beer Café: Following its acquisition of The Beer Cafe chain in October 2022, BIRA 91 now operates and manages a large network of exclusive beer-focused pubs and restaurants. Distribution & Sales: Leveraging a robust distribution network to sell its products through: Retail outlets (liquor stores). On-trade channels (restaurants, pubs, bars). Its own online store and taprooms. Merchandising: Selling branded merchandise (glassware, apparel, gifts) to enhance brand visibility and loyalty. Business Model and Value Proposition: BIRA 91's business model is centered on creating a premium, modern, and flavorful beer experience that appeals to young, urban consumers. Its value proposition includes: Product Differentiation: Offering unique and diverse flavors that stand apart from traditional mass-market lagers, often with lower bitterness. Premium Positioning at Accessible Price Points: Filling the gap between expensive imported beers and conventional domestic brands, providing a "high quality, low price" perception. Strong Brand Identity: Playful, modern packaging and branding with "91" (India's country code) signaling global ambition with local pride, and a monkey mascot symbolizing fun. Consumer Engagement: Focusing on digital marketing, experiential events (like the "April Fools' Fest"), and collaborations to build a strong community around the brand. Strategic Expansion: Leveraging its acquisition of The Beer Cafe to expand its on-trade presence and direct customer engagement. Market Positioning and Competitive Advantages: BIRA 91 has established itself as a significant disruptor and a prominent player in the Indian beer market. Rapid Growth: Historically, BIRA 91 has shown impressive growth rates, tripling its market share in key markets over recent years. Craft Beer Pioneer: One of the pioneers in popularizing craft and flavored beers in India, appealing to evolving consumer tastes. Strong Brand Recall: High brand recognition among its target demographic. Extensive Distribution: Products available in over 500 towns and cities across 16 countries. Manufacturing Footprint: Operates four breweries in India, ensuring consistent supply. Strategic Investments: Backing from prominent global investors like Kirin Holdings, Peak XV Partners (formerly Sequoia Capital India), and Sofina. Key Milestones and Recent Developments (2024-2025): March 2024: Raised its latest funding round from Alteria Capital. April 2025: Faced reports of employee salary delays and supply chain strain, attributed in part to an ₹80 crore inventory write-off due to a legal name change and labelling transition, as well as regulatory changes in Andhra Pradesh and Delhi. May 2025: Announced plans to raise as much as ₹850 crore through debt (led by BlackRock with ₹500 crore structured debt) and a rights issue (₹100 crore expected to close in June 2025) to address financial strains, acquire early shareholders, and infuse new capital. Q4 FY25: Reported 40% year-on-year growth in Q4 FY25, indicating a recovery in business stabilization. **2026 (Planned) **: Aims for a public listing (IPO) by 2026.

Financial Performance (INR Lakh)

Financial Analysis Insights (Based on Reported Data): Revenue Decline in FY24: After consistent growth, BIRA 91 saw a significant 22% year-on-year revenue drop in FY24 to ₹638 crore. This was attributed to "business disruption across multiple markets" due to a legal name change, product write-offs (₹80 crore in FY24), and regulatory challenges. Widening Losses: Net losses widened substantially to ₹749 crore in FY24, a 68% increase year-on-year. EBITDA also moved further into negative territory. Cash Flow & Working Capital: The company reportedly faced challenges with salary delays, vendor payments, and interest payments in late 2024 and early 2025, indicating significant financial strain and working capital issues. Gross Margins: Despite the challenges, BIRA 91 claims gross margins of 66%, significantly higher than competitors like United Breweries (47%), suggesting a strong product margin once operational issues are resolved. Funding Reliance: The company has raised substantial capital (total of $457 million across 20 rounds), demonstrating investor confidence in its long-term potential despite recent setbacks. The ongoing fundraise of ₹850 crore (led by BlackRock) is critical for stabilization and future growth. Valuation: As of July 10, 2024, its valuation was reported at ₹4,370 crore (~$525 million). The unlisted share price has seen high trade activity and fluctuations, reflecting market sentiment.

Leadership Team

Founders: **Mr. Ankur Jain (Founder & CEO) **: The visionary behind BIRA 91, instrumental in building the brand and disrupting the Indian beer market. He remains confident in the company's revival and next growth phase. **Mr. Tanmoy Mukherjee (Co-founder) **: Contributed to the establishment of the brand. Board of Directors: Specific board composition beyond founders and major institutional investors is not readily available for this unlisted entity. Key investors like Kirin Holdings, Peak XV Partners, and Sofina likely have representation or significant influence. Leadership Vision and Execution Capability: Ankur Jain's leadership has been key to BIRA 91's rapid ascent and its ability to attract significant investor capital. Despite recent operational challenges and financial stress, the leadership is focused on stabilizing the business, improving efficiency, and leveraging fresh capital for renewed growth. Their strategy to reduce fixed costs and increase revenue per case sold, alongside the ongoing large fundraise, points to a clear plan for recovery and future expansion.

Industry Overview: India's Dynamic Alcoholic Beverage Market

Sector Deep Dive: BIRA 91 operates within the alcoholic beverages industry, specifically targeting the beer segment, with a strong focus on craft beer and flavored beer, which represents a premium and growing sub-segment. Market Size, Growth Projections, and Drivers: Indian Alcoholic Beverages Market: Estimated at $52.5 billion, projected to grow at a CAGR of 6.8%. Indian Beer Market: Growing steadily, driven by: Premiumization Trend: Increasing consumer preference for premium, flavorful, and craft beers over traditional strong lagers. Rising Disposable Incomes: Enabling consumers to afford higher-priced, aspirational products. Changing Consumer Preferences: Especially among urban young adults and millennials, seeking diverse and unique drinking experiences. Increasing Social Acceptance: Growing acceptance of alcoholic beverages in social settings. Favorable Demographics: A large young population reaching legal drinking age. Key Industry Trends and Disruptions: Growth of Craft Beer: Shift from mass-produced lagers to artisanal, diverse, and often locally brewed craft beers. Health and Wellness: Rise of low-calorie, low-carb, and "better-for-you" alcohol options (e.g., hard seltzers, light beers). Digitalization: Increased use of e-commerce and online delivery platforms for alcoholic beverages (though highly regulated). Experiential Marketing: Brands focusing on taprooms, festivals, and events to engage consumers directly. Sustainability: Growing consumer demand for ethically produced and environmentally conscious brands. Competitive Landscape: The Indian beer market is dominated by a few large players and a growing number of craft breweries. Major Players: United Breweries (Heineken), AB InBev (Budweiser, Corona), Carlsberg. Other Key Brands: Kingfisher, Tuborg, Budweiser, Haywards (these are larger by revenue/volume than BIRA 91, which holds a 5% market share in key urban markets). Craft Beer Segment: Numerous microbreweries and local craft beer brands emerging across major cities. BIRA 91 competes by focusing on innovation, unique flavor profiles, premium positioning, and strong brand building. Regulatory Environment: The alcoholic beverage industry in India is highly regulated at both central and state levels. Regulations cover manufacturing, distribution, sales (including online), advertising, and pricing. Frequent changes in state excise policies can significantly impact business operations, as BIRA 91 experienced in Andhra Pradesh and Delhi.

Future Outlook and Risks

Growth Potential: Market Recovery: Despite FY24 setbacks, the underlying growth drivers for premium and craft beer in India remain strong. Strategic Partnerships: The BlackRock-led debt infusion and rights issue are crucial for financial stability and future expansion. Distribution Expansion: Continued focus on expanding retail and on-trade presence, especially into Tier II and Tier III cities. Product Innovation: Continued introduction of new and unique beer variants, hard ciders, and seltzers to cater to evolving tastes. International Markets: Established presence in the US, UK, UAE, Singapore, Thailand, and Hong Kong offers avenues for global growth. The Beer Cafe Synergy: Leveraging The Beer Cafe chain to create direct consumer touchpoints and promote BIRA 91 products. IPO Plans: A potential IPO in 2026 could provide significant capital for future growth and liquidity for early investors. Key Risks and Challenges: Financial Health: The significant losses and reliance on large funding rounds, coupled with the recent operational challenges and cash flow issues, highlight financial fragility. Sustained profitability is crucial. Intense Competition: The entry of new players and the aggressive strategies of established brewers can intensify price wars and make market share gains challenging. Regulatory Uncertainty: Frequent and unpredictable changes in state excise policies and regulations pose a significant operational risk. Supply Chain & Manufacturing: Ensuring consistent quality and overcoming past supply chain disruptions are critical. Brand Perception: Managing the recent negative press regarding employee dues and supply issues to protect brand image. Consumer Preferences: Rapidly changing consumer tastes require continuous innovation and adaptation. Inflation: Rising input costs (raw materials, packaging) can impact margins.