More than 250 employees of B9 Beverages, famed for the popular Bira 91 craft beer, have formally petitioned the board, major investors such as Kirin Holdings and Peak XV Partners, and lenders like Anicut Capital seeking the removal of founder and CEO Ankur Jain.
The petition cites governance failures, lack of transparency, delays in salaries and dues, stalled production, and diminishing company financial health. Production ceased in July 2025, with BlackRock withdrawing from a planned ₹500 crore investment.
While Jain acknowledged payment delays and operational challenges, he expects production to resume soon and assures efforts to resolve difficulties.
Financial Strain and Employee Hardships
The petition exposes stark financial difficulties that have directly affected employees. Many have endured unpaid salaries for six months, with company contributions to tax deducted at source (TDS) and provident fund also delayed since early 2024.
The company owes roughly ₹50 crore in pending dues to over 500 current and former employees, making it a serious labour concern. Since its peak with over 700 employees last year, B9 Beverages’ workforce has shrunk to about 260, reflecting the company’s cost-cutting and restructuring responses to mounting pressure.
According to insiders, these disruptions have severely impacted morale and the quality of work-life. The deferred payments and shrinking team size create an atmosphere of insecurity and fear of further layoffs or company liquidation. The company attributes these difficulties to ongoing business realignment, targeting fewer states to reduce losses and fixed costs and improve margins while navigating stringent regulatory changes.
These efforts coincide with a significant drop in sales volume from 9 million cases in FY23 to an estimated 6–7 million in FY24 alongside annual losses of ₹748 crore from revenues of ₹638 crore, highlighting systemic challenges.
Governance Issues and Leadership Challenges
The leadership crisis escalated dramatically after a September town hall meeting revealed employee grievances and unified calls for change. Many staff expressed frustration over governance issues, lack of transparency in decision-making, and leadership’s failure to address financial problems proactively. The petition asserts a demand for replacing founder and CEO Ankur Jain, blaming him for not addressing these critical concerns effectively.
Despite the petition’s seriousness, Jain and the board have refrained from formally responding or acknowledging receipt, which employees say adds to their disillusionment. Jain publicly denied receiving any official petition directed at shareholders, although insiders insist the petition has been communicated to the board and key investors. The board composition, largely dominated by Jain and his family, underscores the power dynamics at play, making investor influence crucial, especially given Kirin Holdings’ significant 20.1% stake.
The leadership turmoil is compounded by recent financial setbacks, including BlackRock pulling out of a major investment deal, further straining liquidity. The suspension of production since July 2025 marks a low point in operational continuity, with uncertain prospects for immediate recovery.
Industry Context and Competitive Pressures
B9 Beverages, launched in 2015 and quickly becoming a pioneer in India’s craft beer scene, has encountered fierce competition in recent years from both local and international brands. The craft beer market has matured, and consumer preferences have shifted, making growth more challenging. Regulatory shifts-such as changes in liquor policies and mandatory company name adjustments-have also added operational complexity and costs.
The company’s strategic attempt to downsize operations by focusing on fewer states was designed to weather these external pressures and regulatory hurdles. However, such moves carry inherent risks of reduced market presence and alienation of distributors and customers. Analysts observe this period as critical for Bira 91, with the company needing to stabilise its finances and regain trust among employees and stakeholders alike.
The Logical Indian’s Perspective
The unfolding crisis at B9 Beverages serves as a stark reminder that the pursuit of growth and business success must be balanced with ethical governance and genuine care for employee welfare.
Rapid expansion without strong internal communication, transparency, and fairness can sow discord, breeding dissatisfaction that jeopardises both human and commercial capital.
The Logical Indian believes that companies must foster cultures rooted in compassionate leadership and open dialogue, allowing employees to voice concerns safely without fear of reprisal.
