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B9 Beverages is planning a shake-up in the beer industry. Backed by Kirin Holdings, the Indian Craft Beer Brand is ready to compete with global brands. Bira is planning to build a $70 Million Beer Factory going in before launching its IPO by 2026.
Bira Is Expanding Production Capacity
B9 Beverages India is planning to build their brewing facility in Uttar Pradesh. Their CEO Ankur Jain stated that once completed, it will be India’s Largest Beer Factory and will expand their production.
Currently, Bira leases 6 brewing units and sells around 8 million units in a year.
What does the CEO say about Bira’s operations?
“2023 was a very tough year for us because we underwent a very drastic transformation in our sales operations, supply chain, financial checks and balances,” Jain said. “It was a deliberate decision that caused a slowdown, but we are a much stronger company today.”
The new factory will cost between $60 million and $70 million and will have a capacity of 50 million cases, with its first phase expected to become operational by next summer, Jain added.
Bira’s Previous Financial Performance FY 22-23
Bira Managed to touch a revenue of Rs 848.7 crore in FY 22-23. This growth was slow as compared to Rs 726.5 crore in FY 21-22. Their revenue from beer sales was 98% of total operation revenue. This increase by only 13% to Rs 807 crore. The remaining sales came from non-alcoholic products and scrap sold during FY23.
In 2023, Bira changed its operations with a plan to increase its market share. Their EBITDA was at a loss of 216 crore widening their losses. But they plan to turn profitable this year.
Last year, Jain consulted Accenture and Boston Consulting Group to improve financial controls and supply chain management to generate more cash.
Read more: Bira 91 Plans To Go Public In 2026
Current Indian Beer Sector
In 2023, India’s Beer Market was valued at Rs 41,500 crores ($5 billion) and is estimated to reach Rs 78,100 crores by 2032. This is dominated by players like Kingfisher and Carls Berg.
India’s alcohol and beverage industry is the fastest growing in the world but the per capita consumption is much lower than the US, UK, and Australia, as sourced from Indian consultancy Technopak Advisors.
Bira Brought A New Culture
In the last decade, Bira has always given credit for creating a culture of independent craft beer. They had a massive success in India due to its unique taste that is low on bitterness.
Many Indian Bars and restaurant owners saw a jump in Bira’s demand. Word of mouth increased their market share more than traditional marketing could achieve.
“Bira was the poster boy not just for the beer industry, but for new-age Indian alco-bev brands,” said Vikram Achanta, CEO of beverage consultancy Tulleeho Portals. “They demonstrated how an Indian brand, via a guerrilla campaign, could achieve substantial success.”
How To Purchase Bira Shares?
The Bira share is not listed. But it is being actively traded in the unlisted market. The sudden surge is mainly due to increased funding and growing investor trust in this beer brand.
This can be the right opportunity to invest in trending unlisted shares like Bira and increase your wealth by playing on the current bira share price. Stockify reduces the barriers to entry into blue chip stocks and helps you gain before they get listed in the Indian stock market.
Connect with our professionals to learn more.
