Employee Call for Leadership Change at Bira 91: Concerns Raised About Founder Ankur Jain
Over 250 employees of B9 Beverages, the company behind the popular Bira 91 craft beer, are demanding a leadership change, specifically calling for the removal of founder Ankur Jain from management. The employees have submitted a petition to the company’s board and major investors, citing issues such as corporate governance failures, lack of transparency, and significant delays in salary payments. This unrest follows a town hall meeting held in September, where employees expressed their concerns about the company’s financial health and operational challenges.
Employee Concerns and Petition Details
The petition, reportedly signed by nearly all current employees, highlights a range of grievances. Employees have pointed to a failure in corporate governance, a lack of transparency from management, and ongoing delays in receiving their salaries and dues. Many employees have not received their salaries for six months, and reimbursements have been pending since November 2024. Additionally, tax deductions have not been deposited for over 50 employees for the last financial year, exacerbating the situation. The total pending payments for more than 500 employees, including those who have left the company, amount to around Rs 50 crore. The workforce has significantly decreased, shrinking from over 700 employees to just over 260 in the past year, raising concerns about job security and morale within the company.
Production Halts and Financial Struggles
Reports indicate that Bira 91’s production came to a halt in July, with BlackRock withdrawing from discussions to invest Rs 500 crore in the company. The company’s financial situation appears dire, with a reported net loss of Rs 748 crore for FY24 on revenues of Rs 638 crore. Sales volumes have also declined, falling from 9 million cases in FY23 to between 6 and 7 million cases. The company has faced significant disruptions over the past 18 months, attributed to a name change, shifts in liquor policy, and delays in fundraising efforts. These factors have contributed to a backlog of unpaid employee, vendor, and statutory dues, raising alarms about the company’s sustainability.
Management’s Response and Future Outlook
In response to the petition, Ankur Jain stated that the company was not aware of any formal communication regarding the employees’ concerns. He acknowledged a “pause” in production in September but expressed optimism that operations would resume soon. Jain admitted to the delays in salary payments, noting that they range from three to five months depending on the employee’s level. He emphasized that the company has been restructuring its operations to focus on fewer states, which has included significant cost-cutting measures and a reduction in workforce by nearly 50% over the last 15 months. Jain remains hopeful that these changes will improve the company’s financial health and operational efficiency.
Investor and Stakeholder Involvement
The petition has been sent to key stakeholders, including major investors like Kirin Holdings and Peak XV Partners, as well as the largest lender, Anicut Capital. Kirin Holdings is the largest shareholder, holding a 20.1% stake, while Jain and his family own 17.8% of the company. The involvement of these stakeholders may play a crucial role in determining the future direction of B9 Beverages and addressing the concerns raised by employees. As the situation develops, the company faces mounting pressure to resolve its internal issues and restore confidence among its workforce and investors.
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