Craft beer maker Bira 91 is facing mounting financial strain, with its auditor warning that the company’s losses and liabilities raise “significant doubt” about its ability to continue operations. The latest audit report by Walker Chandiok & Co, a network firm of Grant Thornton International, has flagged severe liquidity concerns for the parent company, B9 Beverages, after its net worth was fully eroded in FY24.
According to the audit, B9 Beverages ended the fiscal year with a negative cash flow of ₹84 crore and accumulated losses of ₹1,904 crore. Its liabilities exceeded total assets by ₹619.6 crore as of March 31, 2024. The auditor cited exposure to market, credit, and liquidity risks that could further impact the fair value of the company’s financial instruments.
“These events and conditions indicate material uncertainty regarding the group’s ability to continue as a going concern,” the report stated.
Founder and CEO Ankur Jain maintained that such financial pressure is “not unusual” for fast-growing businesses at scale. He said the management remains confident about meeting obligations based on future cash flows and planned capital infusions from investors.
Bira 91, once celebrated for transforming India’s craft beer market, is now confronting multiple challenges, including layoffs and production halts. In September, over 250 employees reportedly wrote to the board, major investors Kirin Holdings and Peak XV Partners, and lender Anicut Capital, demanding a leadership change amid delayed salary and reimbursement payments.
Adding to the company’s troubles, the Ministry of Corporate Affairs directed B9 Beverages to ensure timely compliance with regulations after it sought an extension to hold its FY25 annual general meeting. The Registrar of Companies later granted a three-month extension to file its financials.
