HOW CHANGE OF NAME BY B9 BEVERAGES MAKES ITS SURVIVAL A BIG QUESTION MARK ? “B9 BEVERAGES PRIVATE LIMITED” TO “B9 BEVERAGES LIMITED”

 HOW CHANGE OF NAME BY  B9 BEVERAGES MAKES ITS SURVIVAL A BIG QUESTION MARK ? 

“B9 BEVERAGES PRIVATE LIMITED” TO “B9 BEVERAGES LIMITED” 

FACTS  

The parent company, B9 Beverages Private Limited, changed its legal name to B9 Beverages Limited to prepare for a potential IPO. 

MINOR CHANGE IN NAME OF THE COMPANY TRIGGERED A MASSIVE REGULATORY CRISIS 

In India's highly regulated alcohol sector, this seemingly minor change triggered a massive regulatory crisis. State excise departments treated the new name as a new entity. 

This required the company to reapply for all licenses, product registrations, and label approvals in every state—a process that took several months. 

As a result, sales were virtually halted in key markets for 4-6 months, leading to an estimated ₹80 crore worth of unsold inventory that had to be written off. 

EMPLOYEES REVOLT 

250 employees of B9 Beverages, makers of Bira craft beer, have filed a petition seeking a change in the leadership, citing 'corporate governance failure, lack of transparency, and six months unpaid salaries. 

IMPACT ON COMPANY  

Company has been making losses for a very long time. The name change happened in September 2023. After 2 years, it is now seen that:  
 
- Nearly 50% of the workforce has been laid off 
- Rs 50 crore+ in pending employee dues and reimbursements. 
- Operations and production reportedly suspended since October 2024. 

• Revenue fell significantly in FY24 (to ₹638 crore from ₹824 crore in FY23). 

• Net losses surged to around ₹748 crore in FY24, exceeding the company's total revenue. 

• Auditors flagged concerns over the company's ability to continue as a "going concern," noting that accumulated losses were substantial and current liabilities significantly exceeded current assets. 

• Production was reportedly halted at some facilities due to cash shortages. 

FINAL THOUGHTS  

In short, a poorly planned administrative change in a highly regulated industry created a cascading supply-chain and revenue disaster, which exposed and exacerbated underlying chronic cash flow issues and led to an employee revolt over financial and governance failures. 

 

R V SECKAR FCS, LLB 79047 19295