Bira 91's financial troubles have deepened, with Hindusthan National Glass and Industries Ltd (HNGIL) issuing a formal insolvency demand notice to B9 Beverages Ltd, the parent company of the popular beer brand, over alleged unpaid dues of ₹11.77 crore.
The notice, issued under Section 8 of the Insolvency and Bankruptcy Code (IBC), gives B9 Beverages 10 days to settle the claimed operational debt or raise a pre-existing dispute. If the matter is not resolved, HNGIL may approach the National Company Law Tribunal (NCLT) under Section 9 to seek initiation of insolvency proceedings.
The development comes at a particularly difficult time for Bira 91, which has been dealing with a prolonged financial crisis, a production shutdown and a restructuring process following the exit of founder Ankur Jain.
The dispute is over more than 51 lakh Bira 91 bottles
At the centre of the dispute are more than 51 lakh customised 650-ml amber glass bottles manufactured by HNGIL for B9 Beverages.
According to the demand notice, the bottles were produced against three purchase orders placed by B9 Beverages in June and September 2024. However, the beer company allegedly failed to lift the finished stock.
The bottles are currently lying at HNGIL facilities in Bahadurgarh in Haryana, Puducherry and Rishra in West Bengal.
The problem for HNGIL is that these are not generic bottles that can easily be sold to another beverage company. They carry Bira 91's branding and were manufactured according to the brewer's technical specifications, making them difficult to sell elsewhere.
How HNGIL arrived at ₹11.77 crore
The claim includes:
₹7.03 crore towards the value of the manufactured bottles
₹1.12 crore in accumulated storage charges
Contractual interest on the outstanding amount
Adjustment of a ₹13.72 lakh credit balance in B9 Beverages' account
Together, HNGIL's claim stands at approximately ₹11.77 crore.
The glass manufacturer has argued that the unlifted inventory has tied up working capital, increased warehousing costs and affected its ability to use manufacturing and storage capacity for other business.
HNGIL had warned Bira 91 earlier
The latest IBC notice did not come out of nowhere.
HNGIL had issued a legal notice to B9 Beverages on May 6, 2026, asking the company to clear the outstanding dues and provide a confirmed schedule for lifting the bottles within 15 days.
According to HNGIL, neither the payment nor a satisfactory lifting schedule materialised.
The company has now escalated the matter through the IBC route.
Bira 91 is not yet in insolvency
While the latest development is serious, it is important to distinguish between an insolvency threat and an admitted insolvency proceeding.
The Section 8 notice is a statutory demand notice that precedes a possible Section 9 application. B9 Beverages has 10 days from receipt of the notice to pay the amount or bring a pre-existing dispute to HNGIL's notice.
If the matter remains unresolved, HNGIL could subsequently approach the NCLT under Section 9 seeking initiation of the Corporate Insolvency Resolution Process, or CIRP.
So, at this stage, Bira 91 faces a fresh insolvency push, but the company has not been confirmed as being under CIRP.
The ₹11.77 crore claim comes amid a much larger financial crisis
The latest creditor action is significant because B9 Beverages is already facing a much larger financial burden.
The company has reportedly been out of production since September 2025 and is estimated to have debt and liabilities of around ₹1,000 crore.
The company has also been undergoing restructuring aimed at addressing statutory liabilities, employee dues and outstanding payments to vendors before a possible restart of operations.
The fresh HNGIL claim therefore adds another layer of pressure at a time when the company is attempting to stabilise its finances.
Bira 91's financial performance had deteriorated sharply
B9 Beverages' financial numbers underline the scale of the crisis.
The company's revenue from operations reportedly fell from around ₹810 crore in FY23 to ₹555 crore in FY24, a decline of more than 30%.
At the same time, its net loss widened dramatically from approximately ₹391 crore to ₹644 crore.
The deterioration came after a series of operational and financial challenges that put significant pressure on the company's cash flows.
How Bira 91's crisis unfolded
Bira 91's problems have been building for several years.
One major setback came after the company changed its legal name from B9 Beverages Pvt Ltd to B9 Beverages Ltd in December 2022.
The change required the company to reapply for alcohol-related licences across multiple states. The resulting disruption affected its ability to distribute and sell products across important markets.
For a beer company, such disruptions can have a particularly severe impact because production, distribution, inventory and state-level excise permissions are closely linked.
The resulting sales pressure contributed to a broader cash-flow crunch.
The company subsequently faced mounting vendor liabilities, inventory-related losses and difficulty raising fresh capital.
Founder Ankur Jain has stepped down
The latest creditor action also follows a major leadership change at B9 Beverages.
Bira 91 founder Ankur Jain stepped down from the company's board and executive positions in 2026, along with members of his family, following an agreement involving the company's lenders and investors.
The move marked a significant change in control as investors and lenders sought to steer the company through its financial restructuring.
Anicut Capital has emerged as a key player in the restructuring process, alongside existing investors.
Investors are trying to revive the business
Despite the financial stress, the story is not necessarily one of an immediate shutdown.
The ongoing restructuring is aimed at recapitalising the business, resolving critical liabilities and potentially restarting operations.
The proposed revival process is expected to focus on settling key statutory obligations, employee dues and vendor payments while providing the company with the working capital required to resume operations.
For investors, the objective is to preserve the value of the Bira 91 brand rather than allow the business to lose further value through a disorderly collapse.
Potential strategic buyers add another layer
There have also been reports of interest from potential strategic investors and buyers in B9 Beverages.
Several business groups and companies have reportedly been considered in connection with a possible investment, recapitalisation or acquisition of the business.
However, any such transaction remains subject to the ongoing restructuring process and should not be treated as a confirmed acquisition.
What happens next?
The immediate deadline is now crucial.
B9 Beverages has 10 days after receiving HNGIL's Section 8 notice to either settle the claimed dues or raise a legally recognised pre-existing dispute.
If the matter is not resolved, HNGIL could move before the NCLT under Section 9.
For Bira 91, therefore, the immediate challenge is no longer just about restarting beer production. The company must navigate creditor claims, vendor liabilities, restructuring negotiations and the possibility of insolvency proceedings, while attempting to preserve the value of one of India's most recognisable home-grown beer brands.
The ₹11.77-crore HNGIL claim may be relatively small compared with B9 Beverages' reported overall debt burden, but the insolvency route makes it significant.
For a company already attempting a financial revival, another creditor moving towards the NCLT could make the road back considerably harder.