Bira 91’s brewery output allegedly nosedives after Andhra exit; company denies slump, says all breweries operational 

A company spokesperson shared that while the company has altered its business model, it has not exited any states in terms of its brewery footprint

Craft beer maker Bira 91 has ceased operations at its largest production facility in Andhra Pradesh after allegedly defaulting on excise payments, businessline heard from sources familiar with the matter. The move, which took place in March, has led to a steep drop in the company’s monthly output, from 22 lakh cases across four facilities to just 10,000–20,000 cases per month currently. However, Bira 91 has denied any non-payment of dues, adding that all its breweries continue to remain active.

Sources also revealed that Bira91 has relied on third-party production facilities for its manufacturing. Reportedly, the Andhra facility, which accounted for nearly 25–30 per cent of Bira’s total production, was fully vacated and the contract was terminated. While the company still holds active agreements with units in Nagpur and Mysuru , only the latter is currently operational, generating up to 20,000 cases/month through a contract manufacturing arrangement. Meanwhile, production at the Madhya Pradesh-based Tripti Brewery has also ceased, sources alleged.

According to sources, Bira 91’s total production capacity previously stood at approximately 22 lakh cases per month, distributed across four key facilities in Andhra Pradesh (7 lakh cases/month), Mysuru (7 lakh cases/month), Nagpur (3 lakh cases/month) and Madhya Pradesh (4 lakh cases/month).

“The discontinuation of operations at the Andhra facility occurred in March, due to non-payment of excise dues, as confirmed directly by a promoter. The facility had to be vacated, and the promoter personally cleared the outstanding taxes to retrieve the final stock. This significant drop in output reflects the brand’s ongoing operational and financial challenges, with capacity utilisation far below earlier levels,” people familiar with the matter revealed.

Sources also shared there is no formal confirmation yet about new facilities, but the company may be forced to explore alternatives to avoid financial strain.

Sandeep Sehgal, Partner-Tax, AKM Global, a tax and consulting firm states, explained, “Andhra has one of the most stringent excise regulatory frameworks for brewing operations. When a licensed brewery sub-leases its facilities to a company, the responsibility for complying with all excise-related obligations, including timely payment of duties, rests jointly with both the license holder and the operator.”

Bira 91, however, pushed back against the claims of promoter involvement. A company spokesperson shared that while the company has altered its business model, it has not exited any states in terms of its brewery footprint. It also denied allegations of decrease in output, adding that the cases reported is significantly lower than its actual volume.

The company has moved to an asset-light model and rationalized capacity in some states, while doubling down on key markets and increasing supply chain capacity in some other markets.

Supply chain capacity

“We are increasing supply chain capacity in some markets. Over the past few months, we have rationalised and changed our supply model to serve our high-performing markets better. This means a mix of contract manufacturing and leased breweries. This will enhance our organisational agility and operational efficiency, contributing to a reduction in fixed costs, faster production cycles, and ensuring consistent supplies. Some of these breweries are part of this transition,” the representative stated.

Alongside, it announced its re-entry into the UP market with an in-state manufacturing partner and a commitment of over Rs 200 crore towards establishing a brewery in the state.

“Uttar Pradesh is a key market for us, and our return is one important pillar – where we expect to drive double-digit market share in the State in the next 24 months,” the spokesperson shared.

According to market intelligence platform Tracxn, the company has raised over $495 million across 16 equity rounds and four debt rounds to date. Its most recent fundraising was in March 2024, when Bira 91 secured $25 million in a Series D round from Kirin Holdings, Tiger Pacific Capital, and Alteria Capital at a post-money valuation of over $523 million.

Despite this, the company’s net revenue declined from ₹434 crore in FY24 to ₹357 crore in FY25, as per documents viewed by businessline. The company continues to report operational losses, with a reported EBITDA of negative ₹255 crore.

Published on July 10, 2025