Indian craft-beer company Bira 91 (parent company B9 Beverages) is facing a serious governance crisis. Key investors and shareholders are preparing to remove founder and CEO Ankur Jain from the board amid mounting concerns about management, finances and transparency.
Over 250 employees of B9 Beverages have formally petitioned the board, investors and lenders to demand a leadership change including Jain’s removal, citing unpaid salaries, vendor dues, and operational issues.
Key Facts & Details
- The petition from employees was addressed to major investors including Kirin Holdings (which holds ~20.1 % of B9 Beverages) and private-equity firm Peak XV Partners (14.6 % stake) among others.
- The shareholders are reportedly planning an Extraordinary General Meeting (EGM) to vote on the removal of Ankur Jain and his family from the board.
- B9 Beverages reported a net loss of ₹748 crore for FY24 on revenue of ₹638 crore; sales volume fell.
- The company’s controlling shareholder stake: Ankur Jain and family hold ~17.8% of B9 Beverages.
- According to reporting, production had effectively halted in July in certain facilities, salaries are unpaid (some up to 6 months), tax deductions and PF payments delayed.
Why This Matters
- Governance signal: The move reflects investor and employee intolerance of prolonged management issues, unpaid liabilities and operational paralysis.
- Brand & business at risk: Bira 91 is a well-known craft beer brand in India; leadership turmoil and financial stress could damage brand value and market positioning.
- Stakeholder confidence: The prospect of founder removal may influence lenders, future investors and vendors in how they view the business and its turnaround prospects.
- Broader craft-beer sector implications: The craft and premium beer segment in India is under pressure; this may be a cautionary tale.
Potential Outcomes & What to Watch
- A formal EGM where shareholders vote to remove Ankur Jain would mark a major turning point; it may lead to fresh leadership being appointed.
- A restructuring plan may be introduced by investors/lenders to bring in turnaround specialists, address unpaid dues, restart production and rebuild operations.
- Litigation risk: The founder has disputed some claims (e.g., about ownership/control of subsidiary businesses) and may challenge certain investor/lender moves. Business Standard
- Impact on employee morale and brand: How the company manages the transition internally and externally will matter for retention and customer confidence.
Final Thoughts
The push by investors and employees to remove Ankur Jain from B9 Beverages’ board underscores deep-seated issues in governance, operations and financial health at Bira 91. For a brand once celebrated as a craft beer success story, this marks a critical juncture. Whether the company can stabilise, regain stakeholder trust and reset will determine its future in a challenging category.
