B9 Beverages Founder Seeks Buyer for Asset to Inject Cash for Pending Dues

Craft beer maker B9 Beverages is facing significant financial challenges, including a substantial net loss of ₹748 crore in FY24 against a revenue of ₹638 crore, and a halt in production since July. Founder Ankur Jain has communicated to employees that the company is pursuing the sale of a non-core asset to secure immediate funds. This cash infusion is critical to address outstanding employee salaries, which have been pending for over six months, and to clear provident fund dues. Employees had previously petitioned for Jain's ouster and appealed to the government regarding unpaid dues.

Impact The sale of the asset is proposed to resolve critical issues, including employee dues and the potential resumption of business in key markets. However, major shareholders like Japan's Kirin Holdings, Anicut Capital, and Peak XV have reportedly questioned the viability and transparency of the proposed asset sale, demanding clarity on the buyer and the terms. This situation highlights the operational and financial difficulties faced by the company and could impact investor confidence in similar ventures within the Indian beverage sector. Rating: 4/10

Terms: Craft beer: Beer produced by small, independent breweries, often focusing on traditional brewing methods and unique flavors rather than mass production. Provident Fund (PF): A retirement savings scheme mandated in India, where both employees and employers contribute a portion of the salary. Asset sale: The process of selling specific properties, divisions, or parts of a company's holdings, rather than the entire business entity. Non-core assets: Resources or properties of a company that are not essential for its primary business operations. Shareholders: Individuals or entities that own shares in a company, representing ownership. Lenders: Financial institutions or individuals who provide loans or credit to a company. TDS (Tax Deducted at Source): A form of income tax collection where the payer deducts a certain percentage of tax before making payments to the recipient.