Bira 91– Company Overview
Established in 2015, Bira 91 is a dynamic and forward-thinking beer brand originating from India. With robust backing from Sequoia Capital India, Sofina of Belgium, and Kirin Holding of Japan, Bira 91 boasts a team of over 600 passionate beer enthusiasts driving its success. Offering an eclectic range of award-winning beers designed to add vibrancy and flavor to any occasion, Bira 91 operates two taprooms in Delhi NCR and two in Bengaluru. These taprooms serve as hubs for patrons to explore the brand’s weekly experimental brews, expertly paired with a delightful curry-shop menu. From innovative lagers infused with local spices to adventurous IPAs bursting with tropical aromas, the company is at the forefront of redefining India’s beer culture. In the world of Bira 91, every sip is an invitation to embark on a flavorful journey.
The AHA Moment
While living in New York, Ankur Jain, the founder of Bira, co-founded a health management startup called Reliant MD. His office was conveniently close to Brooklyn Brewery, a notable craft beer establishment in the US. Jain’s affinity for craft beer blossomed as he frequented the brewery every Saturday afternoon. Upon returning to India, Jain observed the lack of craft beer options in the market. Recognizing the burgeoning potential of India’s beer industry, he made the strategic decision to pivot towards establishing a beer business.
From Flanders’ Craft to India’s Heart: Bira’s Brewing Revolution
The company initially established its first brewery unit in the Flanders region of Belgium, utilizing a craft distillery for contract manufacturing of the beer. Ingredients were sourced from various regions including France, Belgium, the Himalayas, and Bavarian Farms, with the finished product imported to India. Following the initial success, the company transitioned to manufacturing the beer in India, maintaining the same high-quality ingredients sourced from diverse regions.
Fresh Beer from the Tap
Ankur made one of these imported beers available on tap across 10 bars and restaurants in Delhi and there was a 25 times jump in sales volumes.
The sudden spike in sales volumes can be attributed to several factors:
- Freshness and Authenticity: Serving the beer on tap provides customers with a fresher and more authentic drinking experience compared to bottled beer. The direct dispensing from the tap preserves the beer’s flavor and aroma, enhancing its appeal to consumers.
- Cost Advantage: On-tap beer is typically cheaper than bottled beer, as the cost associated with packaging and distribution is reduced. This affordability makes it an attractive option for both consumers and businesses, contributing to increased sales volumes.
- Enhanced Visibility: By offering the beer on-tap, it becomes more visible to customers as it is prominently displayed in bars and restaurants. This increased visibility can lead to higher customer interest and impulse purchases, driving up sales.
Journey from Importer to Brewer
By May 2014, Ankur Jain transformed from being an importer and distributor to a manufacturer. He, however, chose to import his brew from Belgium.
He also raised seed funding from his friends from college and collected $1 million from 6 of them to expand the business and launch his own bottled craft beer.
In 2015 Ankur rebranded it under the name of Bira91.
Bira 91 Beer Variants: Product Portfolio
- Bira 91 White: As the flagship offering, Bira 91 White embodies the essence of a classic wheat beer. With a modest alcohol content of 4%, it boasts a cloudiness typical of wheat beers and delights the palate with low bitterness. Infused with vibrant aromas like citrus and coriander, this brew is a refreshing choice for those seeking a balanced and flavorful experience.
- Bira 91 Blonde: For those with a penchant for hops, Bira 91 Blonde stands tall as an extra hoppy craft lager. Crafted from premium barley and Saaz hops, this clear lager delivers a crisp and satisfying taste profile. Scoring 21 on the IBU scale, it offers a slightly higher bitterness compared to its wheat beer counterpart, yet maintains a harmonious balance. With an ABV of 4.9%, Bira 91 Blonde is a go-to choice for enthusiasts of classic lagers with a twist.
- Bira 91 Light: Catering to the health-conscious consumer, Bira 91 Light presents itself as a low-calorie lunchtime lager. Introduced in June 2017, this brew is a testament to Bira 91’s commitment to offering options for all preferences. Despite its reduced calorie content, Bira 91 Light doesn’t compromise on flavor, making it an ideal choice for those looking to enjoy a guilt-free indulgence without sacrificing taste.
- Bira 91 Strong: Bold and robust, Bira 91 Strong commands attention with its high-intensity wheat beer profile. Sporting a higher alcohol content of 7%, this variant is not for the faint-hearted. Introduced alongside Bira 91 Light in June 2017, Bira 91 Strong caters to consumers seeking a more potent brew without compromising on quality or flavor. With its rich and complex character, it’s a favorite among those who appreciate a bold and full-bodied beer experience.
- The Bira 91 Indian Pale Ale (IPA): Breaking new ground in India’s brewing landscape, Bira 91’s IPA holds the distinction of being the country’s first locally brewed and bottled IPA. Introduced in October 2017, this variant showcases the brand’s commitment to innovation and craftsmanship. With a perfect balance of hops and malt, Bira 91 IPA offers a unique flavor profile that appeals to IPA enthusiasts and newcomers alike. Its introduction marked a significant milestone in India’s beer culture, setting the stage for a new era of brewing excellence.
Brewing Success Through Innovative Marketing Strategies
Bira 91 quickly gained popularity in India due to its unique taste, which offered a departure from the typical bitterness of beer. The brand saw a surge in demand among Indian restaurant and bar owners, largely driven by word-of-mouth publicity rather than traditional marketing campaigns. However, the initial success was accompanied by challenges, including erratic supplies due to the beer being imported from Belgium. Despite facing a supply crunch in 2016, Bira 91 continued to expand its reach, making its international debut at the Tribeca Film Festival in New York City. The brand’s innovative approach extended beyond brewing, with initiatives such as the production of a travelogue series called Bira 91 Hot Stuff and the launch of a hip-hop channel on Saavn. Bira 91 also sponsored notable events like the Global Citizen Festival and embarked on a tour with hip-hop artist Lady Leshurr. Its global presence is further solidified with availability in countries like the USA, UK, Singapore, Hong Kong, Thailand, and UAE. By November 2018, Bira 91 had cemented its status as a global player, announcing its sponsorship of the Cricket World Cup and various ICC events.
The Playful Essence Behind the Name and Logo
Bira 91’s name holds a dual meaning: colloquially resembling a term of brotherhood or friendship in North India and 91 symbolizing India’s country code. Its reverse “B” logo embodies an irreverent spirit, while the monkey mascot represents urban millennials with a playful touch. Together, these elements reflect Bira 91’s commitment to spontaneity, inclusivity, and fun.
Management of the Company
Ankur Jain: Founder & CEO
Ankur Jain, the founder of B9 Beverages Pvt Ltd, embarked on his entrepreneurial journey after completing his degree in Computer Science from the Illinois Institute of Technology, Chicago. Initially working with Motorola, Jain ventured into Healthcare Revenue Management in New York, where he founded his first venture. Successfully selling this venture to an undisclosed healthcare provider network in 2007, Jain returned to India to pursue his passion for brewing. In 2008, he initiated his first beer venture, focusing on importing traditional craft beers from Europe and the US to India. This laid the foundation for B9 Beverages, which later launched Bira 91 beer in early 2015. Jain’s entrepreneurial vision and international experience have been instrumental in shaping Bira 91 into a renowned craft beer brand, marking his significant contribution to the Indian beverage industry landscape.
Meghna Agarwal: CFO & Senior Vice President
Meghna Agrawal brings a wealth of experience and expertise to her role as Chief Financial Officer (CFO) and Senior Vice President at Bira 91. With a background in finance and technology consulting, Agrawal previously served as VP of finance at Diageo India, where she honed her skills in financial management and strategic planning. Armed with an MBA from the London Business School (LBS) and a Bachelor’s Degree in Computer Science from the National University of Singapore (NUS), Agrawal’s diverse educational background complements her extensive professional experience. Her appointment underscores Bira 91’s commitment to fostering top talent and driving global finance operations to support the company’s continued growth and success in the beverage industry.
Industry Overview
Beer has a longstanding history in India, with evidence of its production dating back to ancient times. Traditional brews like sura, mentioned in ancient texts like the Vedas and the Ramayana, reflect its cultural significance. Indigenous tribes have crafted rice beer and millet beer for centuries, using local ingredients and techniques.
The advent of European-style beer in India can be traced back to the 18th century when the British introduced pale ale and Burton ale from England. This marked the beginning of a new era in Indian brewing, with the establishment of breweries like Kasauli Brewery in 1830, producing the iconic Lion beer brand. These European-style beers, designed to withstand long journeys, eventually led to the creation of India pale ale (IPA).
Over time, the Indian beer market evolved, witnessing the rise of local breweries and the introduction of innovative brews. The 20th century saw the emergence of breweries like Lilasons Breweries, known for their strong beer brand Khajuraho, and the consolidation of major players like United Breweries Ltd. (UBL) and Mohan Meakin Breweries.
In recent decades, foreign companies have entered the Indian market, acquiring local breweries and introducing new brands. SABMiller India, Carlsberg, and Anheuser-Busch Inbev are among the key players, contributing to the diversification of beer offerings in the country. Craft beer culture has also gained momentum, with brands like Bira 91 carving a niche for themselves with innovative flavors and marketing strategies.
Despite the growing diversity in the Indian beer market, challenges remain, including high taxation and regulatory constraints. However, initiatives like “Oktoberfest Goa” and the introduction of new brands and festivals signify the dynamic nature of the industry.
Today, brands like Kingfisher, Hunter, Haywards, and Bira 91 dominate the Indian beer landscape, catering to a diverse consumer base. As the beer market continues to evolve, fueled by changing consumer preferences and increased competition, the future promises further innovation and growth in India’s vibrant beer industry.
What Does Bira Bring to the Table?
Product Differentiation :
- New tastes and flavours
- Low alcohol content
Target audience: Young, urban, Indian consumers.
The brand soon went viral, and sales surged, making Bira 91 one of the world’s biggest and fastest-growing craft beer brands.
Investment timeline
2016 – 1st Round of Funding:
- Amount: $6 million
- Investors: Sequoia Capital, Kunal Bahl and Rohit Bansal (Co-founders of Snapdeal), Deepinder Goyal (Founder of Zomato), Ashish Dhawan (ChrysCapital), Mayank Singhal
2018 – Sofina Investment:
- Amount: $50 million
- Investor: Sofina (Belgian family-owned fund), existing investors
2019 – Pre-Series C & Debt Funding:
- Pre-Series C Funding: $4.3 million from Sixth Sense Ventures
- Debt Funding: $10 million for increasing production capacity
2021 – Kirin Holdings Investment:
- Amount: $70 million
- Investor: Kirin Holdings (Japanese integrated beverages company)
- Note: Kirin Holdings’ first investment in India
2023 – MUFG Bank Investment:
- Amount: $10 million
- Investor: MUFG Bank (Japanese bank)
2024 – Tiger Pacific Capital Investment:
- Amount: $25 million
- Investor: Tiger Pacific Capital
- Note: Investment translates to approximately a 4% stake in B9 Beverages, valuing Bira 91 at around $625 million.
Regional Growth Patterns in FY23: West & East Surge, South Faces Shortfall
Revenue Growth at 1.5x
News
Bira 91 and Crocs Unveiled Limited-Edition Collaboration: Stylish Fusion for Urban Youth
In June 2023, Crocs and Bira 91 unveiled their latest collaboration, a limited-edition footwear collection that combines the comfort of Crocs with the playful aesthetics of Bira 91. The partnership introduces the Bira 91’s iconic monkey mascot and other recognizable symbols onto Crocs’ Classic Clogs, catering to the taste of the urban youth. The funky design of the shoes adds a stylish touch to any ensemble, effortlessly elevating one’s fashion statement. Paired with baggy ripped jeans and a classic white tee, these Crocs become the go-to accessory for a night out at the pub, offering both comfort and flair to the wearer’s look.
Bira 91 Partnered with Leading IPL Teams for an Exciting Cricket Season
In IPL 2023, Bira 91 partnered with five esteemed teams – Mumbai Indians, Delhi Capitals, Royal Challengers Bangalore, Kolkata Knight Riders, and Sunrisers Hyderabad, as the Official Partner for the season. Expressing excitement about the collaborations, Ankur Jain, Founder, and CEO of Bira 91, emphasized the brand’s commitment to enhancing the cricket-viewing experience for Indian consumers. The renewal of the partnership with Bira 91 was met with enthusiasm by Dhiraj Malhotra, CEO of Delhi Capitals, who highlighted the alignment of values between the two entities. Similarly, Mumbai Indians, Royal Challengers Bangalore, Kolkata Knight Riders, and Sunrisers Hyderabad spokespersons expressed eagerness to leverage the partnership to elevate fan engagement and create unforgettable experiences. This strategic alliance reflects Bira 91’s dedication to innovation and its shared passion with the teams for delivering exceptional experiences to cricket enthusiasts.
Ashneer Grover: Investing in Bira 91 Despite Teetotal Lifestyle
Ashneer Grover’s statement, “I don’t drink alcohol, but everything that is habit is a good business,” holds particular relevance in the context of his investment in Bira 91. Despite being a teetotaler himself, Grover recognizes the profitability of businesses centered around habit formation. His decision to invest in Bira 91, a craft beer company, underscores his belief in the potential success of ventures that cater to consumers’ habits. This investment reflects Grover’s broader investment philosophy of identifying and capitalizing on opportunities in habit-forming industries, despite personal lifestyle choices.
Bira 91 Introduces ‘Grizly’ Hard Seltzer Ale
Bira 91 expands its product range with the launch of ‘Grizly’ Hard Seltzer Ale, marking its entry into the Hard Seltzers category following the introduction of ‘Hill Station’ Hard Cider Ale. With a focus on catering to evolving consumer preferences, particularly among health-conscious young adults, the move reflects the company’s ambition to offer ‘better for you’ beverage options. CEO Ankur Jain highlights the growing demand for low-alcohol, low-calorie beverages and the desire for innovative flavors. ‘Grizly’ Hard Seltzer Ale aims to bridge the gap in the market, offering a blend of bespoke cocktails, wine, and beer in a single can, crafted by master mixologists. The all-natural, low-sugar seltzers come in three flavors and are positioned as highly session-able drinks, aligning with the trend toward healthier and more diverse beverage choices.
Competitive Landscape
There is no doubt Bira 91 brought craft beer to India and many people saw the acceptance of the product suddenly breweries were being set up to monetize and ride the trend Bira had started.
| Arbor Brewing Company | Kati Patang | Kingfisher Whit Beer |
| Touted as India’s first American Craft Brewery, Arbor | Kati Patang is known for brewing its beer with sparkling clear, pure Himalayan spring water | United Breweries launches first craft beer Kingfisher Ultra Witbier. |
Other Peers
- United Breweries
- SAB Miller India
- United Spirits
Growth Drivers
- Favourable demographics: Rising urbanization, millennial population, and disposable incomes will drive craft beer consumption.
- Evolving consumer tastes: Indian consumers are increasingly willing to experiment with new styles and flavours of beer.
- Premiumization trend: Rising affluence is leading to demand for more premium alcoholic beverage options.
- On-premise market: Pubs, restaurants, bars where craft beer is popular are expanding across metro cities.
- Smaller cities/towns: These markets are relatively underpenetrated currently but present an opportunity.
Risks/Challenges
- High taxes & regulation: High state taxes and stricter alcohol policies can negatively impact demand and profits.
- Strong competition: Mass-market beers have entrenched distribution and brand loyalty which can limit market share gains.
- Profitability pressure: Bira 91 continues to post losses due to high marketing costs and limited operating leverage. Therefore, profitability could take time.
- Required capital investments: Expanding production and distribution will require significant capital investments putting pressure on cash flows.
Bira 91 Share Price (as of 20.03.2024)
- The buy price of Bira 91 varies based on quantity, ranging from 635 for quantities between 100 – 499 shares to 620 for quantities between 5000 – 5100 shares, with corresponding rates per share.
- The 52-week high is 720, and the 52-week low is 570 indicating the range of fluctuations in the share price. Additionally, the sell price of Bira 91 is fixed at 555.
Currently, the Bira 91 Unlisted Share Price is trading at around Rs. 615/share.
Financial Metrics for Bira 91 (as of 20.03.2024)
| Particulars | Amount |
| Price to Earning Ratio (P/E) | – |
| Price to Sales Ratio (P/S) | 6.48 |
| Price to Book Value (P/B) | -37.28 |
| Industry PE | 52.07 |
| Face Value | ₹ 10 |
| Book Value | ₹ -16.63 |
| Market Cap | ₹5339.75 Cr |
| Dividend | 0 |
| Dividend Yield | 0 % |
Shareholdings of Bira 91
| Name | % of Equity held as of March 31, 2023 |
| Sequoia Capital | 24.83% |
| Kirin Holdings | 21.50% |
| Ankur Jain | 6.66% |
| Sofina Ventures | 6.29% |
| ESOP | 6.07% |
| Sixth sense ventures | 4.43% |
| Sashi Jain | 3.55% |
| Atma Ram Builders | 1.17% |
| Chhattisgarh Distilleries | 1.13% |
| Others | 24.62% |
Financials
₹ (in crores)
| Particulars | FY 2023 | FY 2022 | FY 2021 |
| Net Revenue | 824.32 | 718.85 | 478.75 |
| EBITDA | (240.08) | (100.34) | (209.96) |
| Profit After Tax | (445.48) | (251.51) | (317.89) |
Over the fiscal years from FY 2021 to FY 2023, the company achieved remarkable growth in net revenue. However, despite this positive trajectory, challenges emerged in maintaining profitability, as reflected by notable losses in both EBITDA and Profit After Tax (PAT). These challenges stemmed from the company’s ambitious expansion strategies, robust marketing campaigns, and significant investments in sponsorships. While these initiatives were aimed at bolstering market presence and brand recognition, they resulted in increased operational expenses and temporary setbacks in profitability.
IPO Plans
While Bira 91 has expressed an intention to go public in the past, the timing is currently uncertain. Here’s what we know:
Evidence of IPO plans:
- Public company status: In 2022, B9 Beverages converted itself into a public company called B9 Beverages Limited, a key step in the IPO process.
- Previous statements: Bira 91’s CEO, Ankur Jain, previously stated plans for an IPO in the next three to five years, which would have placed it within the timeframe of 2022 to 2027.
- Expansion and fundraising: Recent efforts like acquiring The Beer Cafe, building new production facilities, and seeking fresh funds could be seen as preparation for an eventual IPO.
Conclusion (1/2)
- Market Impact and Strategic Evolution: Bira 91’s introduction of diverse craft beers has significantly impacted India’s beer landscape, offering consumers a wide range of flavors and options. The brand’s transition from importing to local brewing has been pivotal, ensuring freshness and reducing costs associated with distribution and packaging.
- Diverse Product Portfolio and Consumer Reach: Bira 91’s product range, including flagship offerings like Bira 91 White and Bira 91 Blonde, caters to various taste preferences, contributing to its broad consumer base. With over 600 passionate team members and multiple taprooms across Delhi NCR and Bengaluru, Bira 91 has established a strong presence in key urban centers, fostering brand loyalty and consumer engagement.
- Innovative Marketing, Leadership and Brand Identity: : The brand’s unconventional marketing strategies, including the production of a travelogue series and sponsoring events like the Global Citizen Festival, have effectively captured consumer interest and bolstered brand visibility both locally and internationally. Ankur Jain’s entrepreneurial vision and Meghna Agarwal’s financial acumen have been instrumental in driving Bira 91’s success, steering the brand towards sustained growth and market leadership. Bira 91’s playful brand identity, characterized by its name, logo, and mascot, resonates with urban millennials, enhancing its appeal and fostering a sense of community among consumers.
- Industry Evolution: India’s beer market has evolved from ancient indigenous brews to modern craft beer, with brands like Kingfisher and Bira 91 leading the transformation.
- Strategic Investment: Bira 91’s strategic funding rounds, including investments from Sofina, Kirin Holdings, and MUFG Bank, have fueled its expansion and product diversification, reflecting investor confidence in the brand’s potential.
Conclusion (2/2)
- Competitive Dynamics: The emergence of craft breweries alongside global players like SABMiller and United Spirits has intensified competition, driving innovation and market differentiation.
- Financial Performance: Bira 91 has shown significant growth in net revenue over fiscal years from FY 2021 to FY 2023. However, challenges in maintaining profitability are evident, with notable losses in EBITDA and Profit After Tax (PAT), attributed to ambitious expansion and marketing strategies.
- Share Price: Bira 91’s share price fluctuates between Rs. 635 to Rs. 620 based on quantity, with a 52-week high of Rs. 720 and a low of Rs. 570. Currently trading at around Rs. 615/share, the company maintains a fixed sell price of Rs. 555.
- Shareholding Structure: Key stakeholders include Sequoia Capital (24.83%), Kirin Holdings (21.50%), and Ankur Jain (6.66%), among others. This diverse ownership reflects confidence in Bira 91’s future prospects.
- IPO Plans: Bira 91’s conversion to a public company in 2022 and CEO Ankur Jain’s statements hint at IPO plans within the next few years. However, concrete timelines are yet to be confirmed, despite recent efforts in expansion and fundraising.
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