A minor legal name change has led to major regulatory and operational disruptions for B9 Beverages, the parent company of Bira 91 beer. Over 250 employees have signed a petition seeking the removal of founder Ankur Jain, citing mismanagement, unpaid salaries, and outstanding vendor payments, according to The Economic Times.
The issues began when the company changed its name from B9 Beverages Private Limited to B9 Beverages Limited in FY 2023–24, removing the word “Private.” Though seemingly minor, the change caused states to view it as a new entity, resulting in immediate bans on Bira 91 sales. Fresh approvals, licenses, and product registrations were required for all variants, severely impacting operations.
This regulatory fallout caused B9 Beverages to halt sales for months, write off inventory worth Rs 80 crore, and suffer a 22% sales drop. Losses surged 68% in FY 2023–24, with a net loss of Rs 748 crore against revenue of Rs 638 crore. Production stopped in July, and a potential Rs 500 crore investment from BlackRock reportedly fell through.
Ankur Jain acknowledged salary delays ranging from three to five months but said no formal notice had been received from employees or shareholders.