Bira 91 Lenders Seize Control of The Beer Cafe Amid Financial Crisis and Legal Dispute

Cash-strapped beer maker Bira 91 is facing a new challenge as its lenders, Anicut Capital and Japan's Kirin Holdings, have taken control of its subsidiary, The Beer Cafe. This action follows Bira 91's alleged failure to repay loans. Bira 91 had acquired The Beer Cafe's parent company, Better Than Before, in 2022.

Bira 91 founder Ankur Jain has vehemently opposed the lenders' move, terming it illegal and a breach of contracts. He stated that Bira 91 has initiated legal proceedings in the Delhi High Court. According to Jain, the high court issued an interim order on October 17, 2025, which prohibits Anicut Capital from selling or creating third-party interests on The Beer Cafe's shares.

The company is reportedly trying to raise $100 million to revive its operations. Bira 91 has been experiencing significant financial distress, with revenue declining 22% year-on-year to INR 638 crore in FY24 and its losses escalating by 68% to INR 748 crore. In a prior move to manage its debt, Bira 91 had issued shares worth INR 100 crore to its creditors as non-cash consideration.

Furthermore, Bira 91 faced substantial operational disruptions and inventory losses between January 2023 and June 2023. This was due to regulatory hurdles encountered after its conversion from a private to a public limited company, requiring fresh approvals in each state.

Impact This development signifies a major setback for Bira 91, potentially impacting its valuation, investor confidence, and ability to secure necessary funding for its revival. The loss of control over The Beer Cafe, a chain with 42 outlets, could severely affect its revenue streams and brand presence. Rating: 7/10

Difficult Terms: Subsidiary: A company controlled by a parent company. Alcobev: Alcoholic beverage. Equity Investor: An investor who buys shares in a company, gaining ownership. Debt: Money borrowed that must be repaid, often with interest. Working Capital: Funds needed for day-to-day business operations. Collateral: An asset pledged as security for a loan, which can be seized if the loan is not repaid. Defaulted: Failed to meet a financial obligation, such as repaying a loan. Interim Order: A temporary court order issued before a final judgment is made in a case. Contravention: The act of violating a law, agreement, or rule. Non-cash Consideration: Payment for goods or services that does not involve money, such as stock or assets. Creditors: Individuals or entities to whom money is owed. Revenue: The total income generated from sales of goods or services. Public Limited Company: A company that offers its shares for sale to the general public on stock exchanges. Private Limited Company: A company whose shares are not offered to the general public and are held by a limited number of shareholders. Profitability: The ability of a business to generate profit. Supply Chain Financing: A financial arrangement where a company leverages its supply chain to obtain short-term funding. Incentives: Payments or rewards given to employees for achieving specific goals.