According to The Economic Times, hundreds of workers at Bira 91’s parent business, B9 Beverages, have petitioned the board and investors for a change in leadership.

The story claims that more than 250 workers demanded that founder and CEO Ankur Jain be removed from his position after approaching the board and important stakeholders, such as the company’s biggest lender, Anicut Capital, Japanese beverage giant Kirin Holdings, and Peak XV Partners.

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The petition, which was issued soon after a September business town hall, purportedly stated that the demand was made because of “corporate governance failures, lack of transparency, delays in salaries and employee dues,” and deteriorating financial health.  Employees also cited ongoing creditor disputes and unpaid vendors as evidence of “deteriorating financials.”

TDS, PF, and salary payments are delayed.  According to the article, which cited several workers, salaries have not been paid for as long as six months, while reimbursements have not been made since November 2024.

The corporation allegedly failed to deposit TDS for the previous fiscal year, according to over 50 employees, and the last time PF contributions were made was in March 2024.  Dues and reimbursements owed to approximately 500 employees total almost Rs 50 crore, one employee told the publication.

The company’s staff has shrunk to roughly 260 workers from 700 the previous year due to a number of layoffs and exits.  The founder admits to the delays.

Ankur Jain confirmed employee payment delays in response to the accusations, saying, “It is true that we have employee overdues that have been persisting.”

Depending on the number of employees, these can last anywhere from three to five months. They also involve a delay in paying taxes that are owed.  Jain, however, stated that the board had not received any official correspondence and that the company was “not aware of any such petition addressed to key shareholders.”

He continued by saying that during the previous 18 months, the company had “significant business disruptions,” such as a September production halt, modifications to the liquor policy, a name change, and delays in fundraising initiatives, all of which had an adverse effect on operations and cash flow.

According to Jain, who expressed confidence that production would resume this month, “these resulted in volume degrowth in FY25, complete disruption of the company’s business and cash flow for several months, and a pileup of overdues including statutory dues, employee dues, and vendor dues.”

With the support of foreign investors Kirin Holdings and Sequoia Capital India (formerly Peak XV Partners), Bira 91, which was established in 2015, has become one of India’s most well-known craft beer companies.  Nonetheless, one of the most significant obstacles in the company’s ten-year journey is the current instability.