Bira 91 makers move to sell an asset as it fails to clear salary, PF dues: Report

B9 Beverages, the craft beer maker behind the Bira 91 brand, has reportedly moved to sell one of its assets in an effort to raise funds for clearing outstanding employee salaries and provident fund dues. The move is aimed at alleviating critical cash flow constraints that have left more than 250 employees with unpaid wages for over six months and halted the company’s production since July.

According to a report in The Economic Times, founder Ankur Jain informed employees that a buyer has been found, and the proposed sale could provide what he described as “immediate cash” for the financially distressed company. 

In a letter to the employees, Jain stated that they have sent the proposal to key lenders and shareholders yesterday and are hopeful of timely consent. However, he declined to name the specific asset involved in the sale. The company is also working to secure approval from major stakeholders including Kirin Holdings, Anicut Capital, and Peak XV.

Jain further told the financial daily that the company has identified various avenues to resolve dues for employees and recovery of business including sale of certain non-core assets. The asset sale is part of broader efforts to address unpaid salaries, arrears, and reimbursements dating back to November 2024, as well as pending TDS for over 50 employees from the last financial year.

Despite the stated urgency, the sale has been met with scepticism from some investors who have expressed concerns that they are not aware of the buyer and if there is a firm offer or a term sheet.

Jain’s letter detailed the anticipated effects of the sale, stating that the sale would “enable immediate solution to some critical areas, including employee provident fund (PF) dues, payroll for the bottom 50% of employees (including ex-employees) and resumption of business in key markets.” 

B9 Beverages reported a net loss of Rs 748 crore in FY24, exceeding its revenue of Rs 638 crore, as volume sales declined to 6-7 million cases. It has not yet filed FY25 earnings.