The craft beer darling that once promised to change how urban India drinks is now deep in a crisis that keeps getting uglier. In the latest twist in Bira 91’s ongoing crisis, investors have effectively taken over The Beer Cafe, the popular pub chain that sits under the Bira 91 umbrella, after the company defaulted on loans backed by shares of the caf business.
The matter is now in the Delhi High Court, which has stepped in to stop the sale or transfer of those pledged shares for the moment. But the message is clear. Control is slipping, and the financial drama isn’t even the whole story.
, the parent company of Bira 91, have written to government authorities and to investors, saying they haven’t been paid for months. Some say salaries are delayed by up to seven months.
Tax deductions were apparently taken from salaries but not deposited. Provident fund and gratuity payments were skipped. People are angry, scared and asking for a forensic audit. They are also demanding that founder and CEO Ankur Jain step aside. It’s not just a money problem anymore. It’s a trust problem.
To understand how the situation deteriorated, the trail leads back to late 2023. Bira’s parent company was required to . Routine on paper, but in the liquor business, routine paperwork can derail operations. The shift meant reapplying for state liquor licenses, and for several months, those approvals simply did not come.
Beer was being produced but could not be sold. Industry insiders estimate that roughly Rs 80 crore worth of inventory sat idle in warehouses. Cash inflows dried up; payables did not.
The financial picture now reflects the damage. In FY24, revenue dropped to around Rs 638 crore, while losses surged to nearly Rs 750 crore. Accumulated losses have crossed Rs 1,900 crore.
Auditors have flagged doubts over the company’s ability to continue as a going concern. A planned Rs 500 crore fundraise fell apart, and the company’s unlisted share price has . For a brand once built on swagger and cultural cachet, the fall has been sharp.
Inside the organisation, the impact is visible and personal. The workforce has reduced from about 700 to roughly 260. Employees have exited not by choice but by necessity, with salaries delayed for months. Those who remain are working under constant uncertainty about payroll. Unpaid employee dues alone are estimated at around Rs 50 crore.
What began as a balance sheet crisis is now a livelihood crisis.
The move by Kirin Holdings and Anicut Capital to take control of The Beer Caf marks a decisive moment. These investors were no longer willing to wait for an internal turnaround; they enforced their rights on pledged shares.
The legal proceedings around this will determine the formal outcome, but the power structure has already shifted. Control is now being exercised externally.
Meanwhile, the craft beer market did not pause. Competitors moved quickly into the distribution gaps left by Bira’s licensing disruptions. Consumer loyalty in this segment tends to be fluid, and taps that switched once may not switch back easily.
The coming months will determine the company’s trajectory. Survival hinges on securing fresh capital, resolving governance concerns, restoring supplier and employee trust, and stabilising operations.
Without swift action, the path ahead leads toward insolvency or a restructuring that could leave the brand unrecognisable from the one that once captured urban cool.
The beer has stopped flowing. Now comes the question of whether the brand can survive the hangover.