Kirin Holdings and Anicut Capital Take Over Bira 91's Subsidiary The Beer Cafe Amid Financial Distress

Kirin Holdings of Japan, Bira 91's largest shareholder and lender, along with its lender Anicut Capital, have taken possession of the pledged shares of BTB (Better Than Before), the operator of The Beer Cafe chain and other food and beverage businesses. This action secures The Beer Cafe, a wholly-owned subsidiary of B9 Beverages, following Bira 91's severe financial difficulties, characterized by dwindling sales and a significant cash crunch.

B9 Beverages acquired BTB in 2022. In fiscal 2025, BTB contributed approximately 35% of B9 Beverages' consolidated revenue. The current capital structure reportedly leaves nothing for B9 Beverages. However, Bira 91's founder, Ankur Jain, claims BTB remains a wholly-owned subsidiary and has legally challenged the lenders' actions in the Delhi High Court, which has issued an interim order restricting Anicut Capital from selling or creating third-party interests on BTB shares.

Bira 91 reported a negative cash flow of ₹84 crore in FY24, accumulated losses of ₹1,904 crore, and liabilities exceeding assets by ₹619.6 crore as of March 31, 2024. Sales volume also dropped from 9 million cases to 6-7 million cases in FY23. Executives privy to the development stated the takeover was to 'ring-fence' BTB and its employees, ensuring its protection in case of Bira 91's bankruptcy. Rahul Singh, founder and CEO of BTB, confirmed the ownership change and his commitment to the next phase.

Impact: This development could significantly impact Bira 91's future valuation, investor confidence, and its ability to raise further capital. It also signals a shift in control for The Beer Cafe, potentially affecting its operational direction under joint management by Kirin Holdings and Anicut Capital, while Bira 91 faces legal battles and financial restructuring.

Difficult Terms: * **Wholly-owned subsidiary**: A company that is completely owned by another company, with more than 50% of its shares held by the parent company. * **Pledged shares**: Shares of a company that are transferred to a lender as collateral for a loan. If the borrower defaults, the lender can seize and sell the shares. * **Cash crunch**: A situation where a company or individual has insufficient cash to meet its immediate financial obligations. * **Consolidated revenue**: The total revenue of a parent company and all its subsidiaries, combined as if they were a single entity. * **External commercial borrowings (ECB)**: Loans taken by Indian entities from non-resident entities in foreign currency. * **Ring-fence**: To protect a particular asset or business unit from financial difficulties or bankruptcy of the parent company. * **Sub-judice**: A matter that is currently being decided by a court of law, hence cannot be discussed or commented on publicly. * **Interim order**: A temporary order issued by a court during the pendency of a lawsuit, before a final judgment is made. * **Contravention with contracts**: Acting in violation of the terms or conditions agreed upon in a contract. * **Negative cash flow**: When a company's cash outflows exceed its cash inflows over a period, indicating it is spending more cash than it is generating. * **Accumulated losses**: The total net losses of a company over its entire history that have not been offset by profits. * **Liabilities**: What a company owes to others, including debts, loans, and accounts payable. * **Assets**: What a company owns, including cash, property, equipment, and investments. * **On-premise hospitality**: Services offered at the location where the service is consumed, such as dining in a restaurant or drinking at a bar.