Mumbai, February 18: B9 Beverages, the maker of Bira beer, has rebranded itself as B9 Beverages Ltd, dropping ‘Private’ from its name in preparation for its planned IPO in 2026. However, this seemingly simple name change came with a hefty price tag. The maker of Bira 91 beer faced a significant setback in FY24, reporting an Rs 80 crore inventory write-off and a 68% rise in losses for the year. Here is what exactly happened.

In a move aimed at preparing for its 2026 IPO, B9 Beverages Ltd, the company behind Bira 91 craft beer, faced unexpected financial challenges. The rebranding from B9 Beverages Private Ltd to B9 Beverages Ltd triggered a lengthy re-registration process, causing a sales halt for several months. This disruption led to a Rs 80 crore inventory write-off and a 68% increase in losses for FY24. Bira 91-Parent B9 Beverages Ltd Raises USD 25 Million in New Funding From Tiger Pacific Capital To Expand Manufacturing Footprint.

For the fiscal year ending March 2024, B9 Beverages Ltd, based in New Delhi, reported a net loss of Rs 748 crore, which exceeded its total revenue of Rs 638 crore—a 22% decline from the previous year. The company linked this loss to a one-time inventory write-off and changing state policies that affected its core markets. Quality Power IPO, Shanmuga Hospital IPO, LK Mehta Polymers IPO - All About Upcoming IPOs in February 2025.

How Did B9 Beverages' Name Change Lead to Major Losses?

While essential for the upcoming IPO, the name change directly caused losses by halting sales during a crucial period and creating a market gap that competitors capitalized on, further squeezing the company’s position.

B9 Beverages' founder, Ankur Jain, explained that the company’s name change led to a lengthy re-registration process for product labels and state approvals, which took 4-6 months. This forced the brand to be unavailable in key regions despite continued demand, causing a significant sales disruption. Jain highlighted that during this period, they had zero sales for months while also facing changes in policies and market routes in key regions like Delhi NCR and Andhra Pradesh, which together contribute to over a third of their sales. As a result, sales volume dropped from 9 million cases in FY23 to just 6-7 million cases in FY24.

(The above story first appeared on LatestLY on Feb 18, 2025 12:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).