BrandWagon Exclusive | Layoffs, Excise Dues, and Fundraising Strain: Inside Bira 91’s Brewing Crisis

Craft beer brand Bira 91 is undergoing a period of significant churn, marked by layoffs, liquidity constraints, unresolved excise dues, and a restructuring of its distribution and supply chain model. Exclusive inputs accessed by BrandWagon Online reveal that while the company maintains it is on the path to profitability and growth, internal developments paint a more complex picture.

Layoffs Hit Backend, Company Calls It ‘Right-Sizing’

Roughly 100 employees have been let go over the last few weeks, largely from backend and operational roles, according to former employees and sources close to the matter. The company does not deny the exits but frames them as part of a “right-sizing” effort.

“We’re targeting EBITDA positivity by Q3 FY26,” a company spokesperson told BrandWagon Online. “We’ve already halved our EBITDA loss from a base of Rs 255 crore. The headcount changes are about becoming leaner and more agile, not cost cuts for the sake of it.”

Exit From Andhra Pradesh Brewery Amid Unpaid Excise

In March, Bira vacated its Andhra Pradesh facility—reportedly due to non-payment of excise dues. One of the promoters is said to have intervened personally to clear pending amounts to retrieve final inventory. While the company says this as part of a broader supply chain revamp, sources familiar with the development raise concerns around compliance and financial discipline.

The company said the move aligns with its new hybrid model of contract brewing and leasing. “It’s a transition, not an exit,” the spokesperson said, adding that a new in-state brewery is planned in Uttar Pradesh by 2026, with over Rs 200 crore allocated for the project.

Revenue Dips, Fundraising Uncertain

Internal estimates reviewed by BrandWagon Online indicate a revenue decline from Rs 434 crore in FY24 to Rs 357 crore projected for FY25. Despite having raised Rs 1,800 crore in equity and Rs 1,000 crore in debt since inception, the company’s negative EBITDA stands at Rs 255 crore for the current fiscal year, according to people aware of internal financials.

To manage immediate cash needs, Bira is preparing a Rs 80 crore rights issue. However, insiders say the round has not been closed, and the company is exploring alternate options. “The raise is meant to meet short-term obligations like salaries and offers a two-to-three-month runway,” a person close to the company said.

The company confirmed that a $10 million bridge round, led by DS Group, was closed earlier this year. It also said that family offices of Marico, Pidilite, and the Thapar Group participated in the round. A larger $100 million fundraise is currently in progress.

Brindco Association Raises Eyebrows

Bira’s distribution partner, Brindco, has drawn attention due to its involvement in the ongoing Delhi liquor policy probe. The Enforcement Directorate’s documents name Brindco and its senior executive Amandeep Singh Dhall in connection with the investigation.

While Bira has not issued a public statement on the matter, a company representative said it conducts regular audits of all vendor relationships. “We have internal compliance protocols in place,” the spokesperson said, without commenting specifically on Brindco.

Industry watchers suggest that the association could complicate matters for Bira as it tries to restore investor confidence and raise capital.

The Rebranding Angle—and the Skepticism Around It

In parallel, Bira has initiated a name change and is positioning it externally as part of a brand refresh. However, internal sources claim the rebranding is a regulatory requirement being spun into a narrative. “It’s a name change being sold as a rebranding to deflect attention from what’s happening on the ground,” one person familiar with the developments said.

The company acknowledged that the name change triggered an Additional Tax Credit Reversal (ATCR), leading to unsellable inventory and compliance setbacks. “We’ve cleared that hurdle. Now we’re operating with a leaner model and a sharper focus,” said the spokesperson.

A Brand in Transition—Or in Trouble?

Despite its strong branding and early-mover advantage in the Indian craft beer segment, Bira is facing a tough balancing act: cutting costs without denting morale, restructuring without stoking market anxiety, and fundraising in a tough economic climate.

“There was a storm,” said the company spokesperson. “But we’re on the other side now—with better supply chain economics, investor support, and a clear roadmap to profitability.”

For now, however, the market will be watching closely to see whether this reboot brings results—or simply buys time.