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Kirin Seeks Exit from Bira 91 Amidst Brewer's Financial Woes
19 Nov
Summary
- Kirin Holdings seeks to exit its 20.1% stake in Bira 91.
- Bira 91 faces ₹748 crore loss in FY24 on ₹638 crore sales.
- Company's debt burden has significantly increased to ₹1,000 crore.
Kirin Holdings, a major investor in Bira 91, is reportedly seeking to exit its 20.1% stake in the Indian craft beer company. This move aligns with Kirin's broader strategy to divest from certain alcohol and beverage investments and focus on health and wellness sectors.
Bira 91, operated by B9 Beverages, has been experiencing severe financial distress. This is largely due to business disruptions following a legal name change that required fresh product registrations, coupled with high fixed costs from multiple brewery expansions. The company reported a significant net loss of ₹748 crore in FY24 against sales of ₹638 crore.
The brewer's debt burden has surged to ₹1,000 crore, with existing investors hesitant to inject further capital, leading to internal disputes. Kirin Holdings, which initially invested in 2021, has already written down the value of its equity and debt holdings in Bira 91.
