B9 Beverages faces ₹8 crore dues claim from glass supplier
Bira 91 accused of leaving 5.14mn customised bottles uncollected
Company already battling investor disputes, delayed salaries and vendor payment concerns
Bira Maker B9 Faces ₹8 Crore Dues Notice Amid Mounting Financial, Legal Pressure
The dispute adds to mounting pressure on B9 Beverages, the company behind Bira 91, which is already facing internal legal disputes involving founder Ankur Jain and some of its investors
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Summary
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Craft beer company B9 Beverages, makers of the Bira 91 brand, has been served with a legal notice by glass manufacturer Hindusthan National Glass & Industries Hover (HNGIL) alleged unpaid dues of over ₹8 crore, The Economic Times reported.
According to the report, the glass maker alleged that B9 Beverages reached out to them for the manufacture and supply of customised glass bottles with agreed branding specifications and commercial terms. HNGIL further accused B9 of failing to lift around 5.14mn customised bottles, leaving inventory that is commercially unusable and tying up substantial working capital.
Responding to the matter, founder Ankur Jain told ET that he was unable to confirm the veracity of the claim at this point and they have received several such legal notices from multiple partners related to overdues.
Mounting Pressure on B9
The dispute adds to mounting pressure on B9 Beverages, the company behind Bira 91, which is already facing internal legal disputes involving Jain and some of its investors, alongside complaints of delayed salary payments and pending vendor dues.
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Founded in 2015, the company became popular in India’s craft beer segment and attracted investments from major global and domestic investors. Tiger Pacific Capital invested $25mn in B9 Beverages.
The company's auditor, Walker Chandiok & Co, a network firm of Grant Thornton International, reported last October that B9 lost its entire net worth as accumulated losses rose to ₹2,117.98 crore by the end of March 2024, compared to ₹1,473.01 crore in FY23.
During the year ended 31 March 2024, B9 Beverages incurred a net loss of ₹644.97 crore (FY23: ₹391.83 crore) and recorded negative cash flow from operations of ₹42.26 crore (FY23: ₹241.37 crore). As of that date, the company’s accumulated losses stood at ₹2,117.98 crore (FY23: ₹1,473.01 crore), "a result of which the net worth of the Company is fully eroded", the note stated.