B9 Beverages, known for the Bira 91 brand, is reportedly seeking to sell one of its assets to generate funds necessary to address overdue employee salaries and provident fund contributions. This decision comes in response to severe cash flow issues that have resulted in over 250 employees not receiving their wages for more than six months, subsequently halting the company’s production since July.
According to a report in The Economic Times, Ankur Jain, the founder of the financially distressed company, has informed employees that a buyer has been identified. This proposed sale is expected to offer what Jain termed as “immediate cash” to alleviate the company’s financial difficulties.
In a recent communication to employees, Jain conveyed that the proposal has been dispatched to essential lenders and shareholders as of yesterday, expressing optimism regarding obtaining timely consent. Nonetheless, he refrained from disclosing the specific asset targeted for sale. The company is also in the process of seeking approval from significant stakeholders, which include Kirin Holdings, Anicut Capital, and Peak XV.
Jain informed a financial daily that the company has found multiple pathways to tackle employee dues and business recoveries, which include selling specific non-core assets. This asset liquidation is aimed at resolving unpaid salaries, arrears, and reimbursements that have been outstanding since November 2024, in addition to the pending Tax Deducted at Source (TDS) for over 50 employees from the previous financial year.
Despite the expressed urgency surrounding the sale, skepticism has arisen among some investors. Their concerns stem from a lack of clarity regarding the buyer, as well as uncertainty about whether a firm offer or a term sheet exists.
Jain’s letter outlined the expected outcomes of the sale, highlighting that it would provide an immediate resolution to essential issues, such as settling employee provident fund (PF) dues, covering payroll for the lowest 50% of employees (including those no longer employed), and facilitating the restart of business operations in crucial markets.
B9 Beverages experienced a net loss of Rs 748 crore in FY24, which exceeded its revenue of Rs 638 crore. The company saw a decline in volume sales, reporting between 6 to 7 million cases. Additionally, it has not filed its earnings for FY25 yet.
