Craft beer brand Bira 91 faces mounting operational challenges, as employee dissatisfaction over pending dues and unresolved reimbursements grows. Several current and former employees have voiced concerns about delayed salary payments, non-reimbursement of travel allowances, and abrupt role changes initiated during the company’s restructuring phase.
Trouble Continues for Bira 91
Trouble supposedly started in late 2024 when salary delays occurred regularly and reimbursement for travel expenses was suspended. The internal restructuring, although not officially described as a layoff, resulted in employees being reallocated to other cities or asked to switch into new positions without much notice. Employees who refused were reportedly pushed to resign.
A former sales employee shared with Times Of India that after resigning in December 2024, their notice period was unexpectedly shortened, with final dues still pending months later. “I’ve been waiting 90 days now,” the employee stated, adding that they were informed payments might only materialise by May-end.
Beyond human resource issues, the company’s financial health also appears strained. Internal sources revealed that Bira 91 missed aggressive sales targets for 2023, achieving just 40% of its projections. Despite significant marketing investments including an estimated ₹200-250 crore towards a five-year ICC sponsorship and multiple IPL partnerships supply chain breakdowns undermined brand visibility. “There was demand, but shelves were empty. Breweries stopped operating, and vendors weren’t paid,” noted a former marketing executive.
The company’s decision to change its legal name in 2023 further complicated operations. Required product re-labelling delayed supply and created inventory shortages, particularly during the critical summer season.
Financially, Bira 91 reported a 22% revenue decline to ₹638 crore for FY24, while net losses ballooned to ₹748 crore, exacerbated by inventory write-offs linked to the rebranding exercise. Founded in 2015, Bira 91 has raised around $457 million from investors including Sofina, Kirin Holdings, MUFG Bank, and Peak XV Partners. Its latest funding round of $25 million closed last year.
Bira 91 has yet to offer any official comment on the developments till now.
Also Read: Bira 91’s Costly Rebranding
