Bira’s ₹80 Crore Name Change—Here’s What Went Wrong

Would you change your name for ₹80 crore? B9 Beverages did—and it cost them BIG. The parent company of Bira beer recently faced a staggering loss of ₹80 crore due to a seemingly simple name change, which has significantly impacted its earnings.

In an effort to streamline its brand, B9 Beverages Private Ltd transitioned to B9 Beverages Ltd. However, this decision triggered a series of compliance issues that halted sales for several months. According to The Economic Times, the disruption resulted in a 20% drop in sales and a staggering 68% increase in losses for the fiscal year 2024. The company's net loss ballooned to ₹748 crore, eclipsing its total revenue of ₹638 crore—a 22% decline from the previous year.

The founder of B9 Beverages, Ankur Jain, explained that the re-registration process for product labels across various states took between four to six months, during which time the brand was virtually unavailable in key markets despite ongoing demand. This led to a significant inventory write-off and a dramatic decrease in sales volume, dropping from nine million cases in FY23 to just 6-7 million cases in FY24.

The financial strain comes at a critical juncture as B9 Beverages prepares for an initial public offering (IPO) scheduled for 2026. The company is optimistic about future growth, anticipating operational profitability by next quarter as sales have resumed since the third quarter of FY24. However, they must navigate increasing competition from microbreweries and international brands entering the Indian market.

Industry experts caution that while brands like Bira contribute significantly to India's evolving beer landscape, they must manage their expansion strategies carefully to maintain their unique appeal. Industry watchers emphasise that rapid scaling could dilute the brand's distinctiveness, which is vital for consumer loyalty.

As Bira moves forward, it remains essential for the company to balance ambitious growth plans with financial prudence to ensure long-term sustainability in an increasingly competitive market.