India-Japan Ties: Kirin Holdings & Bira91 Case Study

Japanese beverage giant Kirin Holdings Co Ltd has increased its investment in the budding Indian brewer Bira91 beer by $70 million to push itself from the decreasing sales in Japan. Founded in 2015, Bira 91 is a popular Indian craft beer brand making several kinds of beers including Bira91 White, Bira91 Strong, and Bira91 Indian Pale Ale. Additionally, the brewery is also experimenting with non-alcoholic drinks, but it is not seeing enough sales there. In this write-up, we will discuss the partnership between Kirin Holdings and Bira91 and its impact on the Bira share price.

Bira91 & Kirin Holdings - The Old Tale

Currently, the Indian beverage company B9 Beverages has a market presence in 18 countries with more than 31000 outlets expanded in 550 cities. During the pandemic, the sales of the company squeezed by 10% in FY21 but the beverage giant had a planned strategy that helped him bounce back smartly in FY22. Back then Kirin Holdings, a popular Japanese beverage & pharmaceutical manufacturer invested $30 million in B9 Beverages (Bira91 manufacturer) in 2021.

That was the beginning of Indo-Japanese relations where beer-making companies are planning to expand themselves. Later, Kirin invested $70 million and currently owns a 10% stake in B9 Beverages. The Japanese company however did not disclose how large a share it exactly holds in the B9 after the investment. Also, the impact of Japanese funding is clearly visible in B9 Beverages share price.

The Expansion Plan Of Bira91 With Japanese Funding

As per a report by Reuters, after the funding from Kirin Holdings Co, the Indian craft beer brand Bira91 raised $10 million from Japan’s largest bank, MUFG Bank. The company is going to use the funds to increase its production, improve the supply chain and enhance innovation capacities for better outcomes. With the consistent growth of the alcoholic company, the B9 Beverages share price, and Bira share price are surely going to rise.

In an interview, Ankur Jain, founder and chief executive officer of B9 Beverages said “Looking at this particular investment, our Idea was to get the essential and trusted financial institution based out of Japan, which we successfully fulfilled.”

“We are trying our level best to create an interconnected system of the biggest financial companies across the globe that will be helping us to become the next brewing giant and complete our biggest corporate target of going public, and fulfill our target” Ankur added.

Currently, the beverages-making company responsible for the popularity of craft beer in the country is planning to expand its business to many folds within the next 1 to 2 years to ensure that its IPO is meaningful, Ankur said.

Till now, the exact date and IPO plan are not disclosed by the alcoholic beverages company. However, with a journey full of ups and downs, the current Bira share price is Rs.727 per equity share. B9 Beverages is backed by Sequoia Capital India and Japanese beverage company Kirin Holdings. All the fintech giants collectively hold around 30% stake in B9 Beverages. Jain has not revealed the valuation of the company after the multiple rounds of funding.

In an interview, Yasuhide Hayashi, executive officer of MUFG Bank said that the beer market in India is constantly growing because of changing habits of customers. Preference for alcoholic beverages is consistently increasing resulting in awareness about imported and premium beers.

“As a result of a partnership with the leading beer manufacturer in India, we are planning for expansion, growth, and scalability in India as well as other countries to leverage this Indo-Japanese partnership and multiply revenue in many folds,” Hayashi added.

The home grown brewer company B9 Beverages recently debuted the cafe-chain market after acquiring The Beer Cafe in a lengthy deal. The strategy behind undertaking the cafe is to strengthen the game in the pubs and bar market and create a channel to directly address the customers driven towards beer and its derivatives.

How Does Japanese Investment Impact Bira Share Price?

B9 Beverages have received multiple rounds of funding from Japan which was much needed for the smooth functioning of the business process. Bira91 is one of the popular craft beer brands in India which has become famous due to its less bitter taste. With a great vision, increased funding, and evolving product portfolio, the Indian brewing company is all set to see a rise in its revenue post-public listing. Due to the rapid growth, it is estimated that the Bira share price is going to increase in the future making it the perfect opportunity for investors who wish to buy unlisted shares to earn some quick money.

How You Can Benefit From Bira’s Growth?

The strong financial numbers of Bira reveal that it is the right time to invest in the shares and make some quick money. After receiving lots of investments from multiple firms, B9 Beverages share price is definitely going to rise. Investing early comes with several benefits like developing a healthy financial habit and leveraging the power of compounding.Early investments allow you to take risks and a chance to recover losses along with affording a better lifestyle. When you are young, you can easily fulfil your financial goals along with the possibility of retiring sooner. To catch up with the Bira91 share price NSE or any other stock details, you can connect with experts at Stockify, offering you precise details about the market. We are a reliable online stock broking platform providing you access to blue chip stocks before their listing in NSE and BSE. So what are you waiting for? Start your investment journey with us today!