Bira faces new showdown as investor & lender take control of Beer Café; Move challenged in Delhi High Court

Indian craft beer maker Bira 91 has found itself in fresh trouble. Its parent company B9 Beverages Ltd is now locked in a legal battle after Japanese brewer Kirin Holdings, a strategic investor, and lender Anicut Capital took control of BTB (Better Than Before), the company that operates the Beer Café chain.

According to recent filings with the Registrar of Companies (RoC), Kirin Holdings and Anicut Capital have jointly taken possession of BTB’s shares, effectively seizing control of what was until recently a wholly-owned subsidiary of B9.

BTB operates the Beer Café network of 42 outlets across major Indian cities, besides running other food and beverage ventures. The business, with an estimated turnover of close to ₹100 crore, was among the few profitable arms within B9’s portfolio, making the takeover a significant blow to the group, as per sources.

According to people with knowledge of the matter, this move by Kirin and Anicut who had convertible equity is to secure the company's profitable business, if the chances of liquidation arise in the near future.

B9 has disputed the development, alleging breach of contract and illegal lender action.

“BTB continues to be a wholly-owned subsidiary of B9. Some lenders have taken actions that are in contravention with contracts and illegal, and B9 has disputed these actions,” Ankur Jain, Founder and CEO of B9 Beverages, told CNBC-TV18.

He said the company has moved the Delhi High Court against Anicut Capital’s actions. On October 17, 2025, the court passed an interim order restraining Anicut from selling or creating any third-party interests in BTB’s shares until further hearings.

“Given that the matter is sub-judice, it may not be appropriate for me to comment further,” Jain added.

The legal tussle comes amid one of the toughest financial phases for Bira and its parent company. Once celebrated as India’s fastest-growing craft beer label, B9’s financials have deteriorated sharply over the last two years.

Revenue, which peaked at around ₹840 crore in FY23, dropped to about ₹600 crore in FY24, while losses ballooned to over ₹640 crore—driven by high operating costs, excise duties, and regulatory hurdles. The company also struggled with supply-chain bottlenecks, delayed product labelling approvals, and stock shortages, which hurt sales in key states.

Distributors and vendors have reportedly pulled back due to payment delays, while internally, employee unrest has grown. Over 250 staff members petitioned the board seeking CEO Ankur Jain’s removal, citing delayed salaries, unpaid dues, and governance failures.

In an attempt to stabilize operations, B9 recently brought back Vikram Qanungo as Chief Financial Officer and appointed Dr. Manoj Mishra as VP of Manufacturing. However, these leadership changes have not yet restored confidence among employees or investors.

Investor sentiment has soured dramatically. B9’s unlisted share price has crashed nearly 70%, from around ₹825 in 2022 to ₹248 in October 2025, wiping out significant paper wealth for early backers.

Meanwhile, B9 has been in talks to raise about $132 million from Global Emerging Markets (GEM) and others to recapitalize the company, but the effort appears to have stalled after BlackRock withdrew amid mounting concerns over governance and operational instability, as per sources.

However, sources tell CNBC-TV18, that now the management is looking for domestic fundraising instead of seeking international investors.

Industry watchers say the Beer Café takeover could further complicate B9’s fundraising prospects, as the subsidiary was one of the few profitable assets left in its portfolio.

Kirin, which first invested in Bira in 2021, has steadily increased its stake through subsequent rounds, becoming the largest external shareholder.

B9’s immediate challenges are twofold. First, to regain control of BTB through legal recourse and secure fresh funding to keep operations afloat. With mounting losses, a shrinking distribution network, and growing employee unrest, Bira’s turnaround appears increasingly uncertain.