Bira 91 Maker Faces Employee Revolt and Financial Crisis Amid Name Change Turmoil
B9 Beverages, the company behind Bira 91 beer, is in turmoil as over 250 employees petition for founder Ankur Jain's removal, citing governance issues and financial instability. A recent name change from 'B9 Beverages Pvt. Ltd.' to 'B9 Beverages Ltd.' led to widespread sales bans, requiring new approvals and registrations. This caused a 4-6 month sales disruption, resulting in a 22% revenue drop and a net loss of ₹748 crore, exceeding the total revenue of ₹638 crore. The company has reduced its workforce by nearly 50% and faces issues of delayed salaries and unpaid vendor bills.
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B9 Beverages, the company behind the popular beer brand Bira 91, is facing a severe crisis as over 250 employees petition for the removal of founder Ankur Jain, citing governance issues and financial instability. The company's recent name change has triggered a cascade of problems, leading to significant business disruptions and financial losses.
Governance Issues and Employee Concerns
Employees of B9 Beverages have raised serious concerns about the company's management:
- Over 250 staff members have petitioned for founder Ankur Jain's removal
- Issues cited include governance problems, delayed salaries, and unpaid vendor bills
- Jain acknowledged employee payment delays persisting for 3-5 months
- The company has reduced its workforce by nearly 50%
Name Change Fallout
The company's decision to change its registered name from 'B9 Beverages Pvt. Ltd.' to 'B9 Beverages Ltd.' has had far-reaching consequences:
- All states banned the sale of Bira 91, treating the new entity as different
- Fresh legal approvals, label approvals, product registrations, and licenses were required for every variant
- The re-registration process caused 4-6 months of sales disruption
Financial Impact
The name change and subsequent compliance delays have severely impacted the company's financials:
| Financial Metric | FY 2023-24 |
|---|---|
| Revenue Drop | 22.00% |
| Net Loss | ₹748.00 crore |
| Total Revenue | ₹638.00 crore |
| Loss Increase | 68.00% |
- B9 Beverages wrote off approximately ₹80.00 crore in unsold stocks
- The company's net loss (₹748.00 crore) exceeded its total revenue (₹638.00 crore)
Market Disruption
The name change caused significant market disruptions:
- No sales for several months despite existing demand
- Necessity to register new product labels
- Substantial business interruptions across all operating states
This crisis at B9 Beverages highlights the critical importance of strategic decision-making in corporate governance and the potential ripple effects of administrative changes on a company's operations and financial health. The situation underscores the need for careful planning and risk assessment, particularly when implementing changes that can affect regulatory compliance and market presence.
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