Indian beer-making company, Bira91 has acquired leading domestic alco-beverage chain 'The Beer Cafe' in an all-stock deal for an unannounced price, days after Bira91 acquired UP-registered brewery Kamakhya Beer & Bottling Limited in a share swap deal. In an all-stock deal, the Beer Cafe made the pub a wholly owned subsidiary of Bira91, and the investors in The Beer Cafe, including Bineeta Singh, Granite Hill, Mayfield, RB Investments, and Rahul, will get shares of Bira91.
With the acquisition, the New Delhi-based beer manufacturer, Bira91, is looking to strengthen its play in the taprooms and pubs whilst aiming to build India's first-ever large-scale beer-focused direct-to-consumer platform. Due to this shares swap, Bira91 will get a retail presence through 33 outlets of The Beer Cafe; on the other hand, the pub chain will get backing from the beer company in innovation and supply chain.
This acquisition made The Beer Cafe a fully owned subsidiary of Bira91, giving the investors of Bira91 a high scope at the return on investments. So if you haven't already bought its unlisted shares, check out the Bira share price and start trading.
The Acquisition Strengthening The Bira91 In The Market
According to the terms of the deal, Bira91 will leverage its infrastructure, expansion capabilities and experience to refine the operating model of The Beer Cafe, in order to serve its base of beer enthusiasts better. The Beer Cafe management, with Rahul Singh, Founder and CEO, at the helm, will keep on leading the brand's operations and take absolute responsibility for the newly formed restaurant vertical.
Rahul Singh, CEO and Founder of The Beer Cafe, stated, "The Beer Café has a strong consumer base that is loyal and passionate towards the brand. We have a strong operating model, and by leveraging the strengths of Bira 91, we will be able to enhance the consumer experience and take the brand to newer heights."
Ankur Jain, CEO and Founder of Bira91, said, "Both Bira 91 and The Beer Café were conceived with the same intent of evangelising and elevating the beer experience in the country, and with this acquisition, together we aim to catalyse the growth of beer culture in India." For Bira91's future, they will partake in strengthening The Beer Cafe's offering while continuing to increase the base of Bira91 loyalties by expanding the Bira91 Taproom experience.
Acquisition of the pub chain with the beer manufacturer can be seen as a high future prospect for Bira91. After buying Bira91 unlisted shares, the investors can expect a profitable return on investment. Check out Bira share price, since the company is set to expand its horizons with the presence of 33 outlets in 15 cities across Tier 1/2/3 cities at critical locations, including high streets, malls, and transit hubs of The Beer Cafe.
Bira91 Growth Summed Up
Established in 2015 by B9 Beverages Pvt Ltd, Bira91 has quickly and efficiently become a rage among youngsters. Mainly owing to its delicious beer, strong draft network, and bold identity, Bira91 became a hit among urban millennials. Over the years, Bira91 has secured some massive deals, building a stronghold on the market. In 2017, the beer manufacturer leaped across New York to begin its campaign in the United States. Bira91 clinched an ICC sponsorship deal of tenure 5 years in 2019, becoming the first Indian beverage brand that strikes a global sponsorship deal with the cricket governing body.
Bira91 is one of the fastest-growing beer manufacturers in the world that aims to drive the global shift in beer towards more flavours and colours. The company is set to be big and profitable at an operating level, with its sales amounting to $170 million on an annual basis.
Total Available Shares | 500 |
Face Value | Rs 10 Per Equity Share |
ISIN | INE833U01014 |
Lot Size | 100 Shares |
Current Bira91 Share Price | Rs 775 Per Equity Share |
In April 2020 alone, Bira91 raised $5 million (Rs 38.08 crore) from its existing investors, Belgium-based investment firm Sofina and Sequoia India. To tackle inflation, Bira91 made multiple changes and strategies; they started focusing on selling premium beers. As per Ankur Jain, Bira91 has ramped up its capacity from 6 lakh cases a month (pre-covid) to 22 lakh cases a month (post-covid), and the results can be seen in the financial report FY 2021-22. A volume rise to 727.6 crores in the year 2022 is recorded from 414.6 crores in 2021, which marks a 76% change. The growth percentage also shows a 40.39% rise in FY22 against Fy21.
Bira91 Financial Report FY 2021-22
Particulars (in crore) | 2022 | 2021 | Percent change |
Volume | 727.6 | 414.6 | 76% |
Gross Revenue | 787 | 455.8 | 73% |
Net Revenue | 371.1 | 208.2 | 78% |
COGS | 215.5 | 121.7 | 77% |
Material Cost | 148.8 | 75.1 | 98% |
Gross Margin (Net of material cost) | 224.4 | 133.2 | 67% |
Overheads | 66.7 | 46.7 | 43% |
Gross Margin (Ex Brewery) | 155.7 | 86.5 | 80% |
Supply Chain Expenses | 57.6 | 29.9 | 92% |
Gross Margin Net of Supply Chain Expenses | 98.1 | 56.5 | 73% |
Sales & Marketing | 186.1 | 51.6 | 260% |
Manpower | 65.3 | 59 | 11% |
G&A | 64.3 | 55.1 | 17% |
EBITDA | -217.6 | -109.2 | -99% |
Bira91, after locking its deal with The Beer Cafe, is set to strengthen its part in pubs and taprooms while expanding its business. The acquisition announcement reportedly made Bira91 the talk of the unlisted shares experts. So if you are contemplating checking out Bira share price, do it now since, according to Expert Market Research, the Indian beer market is expected to reach a value of Rs 580 billion by 2027 at an estimated annualised growth rate of about 9.2%. And being the largest competitor in the beer market, Bira91 is set to expand its horizons.
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