B9 Beverages Ltd., an Indian craft brewer supported by Japan’s Kirin Holdings Co., is setting its sights on challenging the dominance of established global beer brands. The company is investing $70 million in a new brewing facility in Uttar Pradesh, poised to become India’s largest beer factory, as it prepares for a public listing in 2026.
Founder and CEO Ankur Jain explained that this new facility will significantly expand B9’s production capacity. Currently, the company operates by leasing six brewing units and sells approximately 8 million cases of beer annually. The new factory, with a production capacity of 50 million cases, is expected to begin its first phase of operations by next summer. This expansion aligns with B9’s broader strategy to capture a larger share of India’s rapidly growing beer market.
The company has also engaged investment bank Morgan Stanley to spearhead an additional round of fundraising in preparation for its initial public offering (IPO). “2023 was a challenging year for us due to a comprehensive transformation in our sales operations, supply chain, and financial management,” Jain said. “Though it temporarily slowed us down, these changes have made us a stronger, more resilient company.”
The upcoming brewery is part of B9’s broader strategy to become a profitable player in India’s competitive beer market, which is currently dominated by major producers like United Breweries Ltd.’s Kingfisher, Anheuser-Busch InBev NV, and Carlsberg A/S. Since its inception, Bira 91 has become a trailblazer among India’s craft beer brands, attracting a young, trendy consumer base with innovative offerings like blonde summer lagers and special-edition pomelo India pale ales.
A Market with Vast Potential
Bira 91 has been hailed as the “poster boy” for not just the beer industry but also for a new wave of Indian alcoholic beverage brands. “Bira demonstrated how an Indian brand, through a strategic guerrilla marketing campaign, could achieve substantial success,” said Vikram Achanta, CEO of beverage consultancy Tulleeho Portals.
India’s beer market, valued at ₹415 billion ($5 billion) in 2023, is projected to grow to ₹781 billion by 2032, according to market research firm IMARC Group. Although India’s alcohol and beverage market is expanding rapidly, per capita beer consumption remains significantly lower compared to countries like the US, UK, Germany, and China, as noted by Technopak Advisors.
In June, B9 secured $50 million in funding through loans from major backers like Kirin and Tiger Pacific Capital LP. To date, the company has raised $290 million in equity and debt from investors, including MUFG Bank Ltd. and Peak XV Partners (formerly Sequoia Capital’s India unit).
Jain has set ambitious targets for the company, aiming to increase Bira 91’s market share from its current 8% to the early teens and to achieve a double-digit EBITDA margin before the IPO. Despite a 17% increase in revenues to ₹8.5 billion for the fiscal year ending in March 2023, the company saw its losses deepen to ₹4.5 billion as it continued to invest in expanding its distribution network, restructuring operations, and constructing the new factory.
Looking Beyond Major Cities
Jain is also shifting focus beyond India’s megacities, recognizing the growing popularity of beer in smaller towns. “It’s not just the young consumers,” he remarked. “Beer is increasingly seen as an everyday alcoholic beverage, with no specific occasion required to enjoy it. This shift is driving more people to experiment with different types of beer.”
For investors, the expansion of B9 Beverages presents both opportunities and challenges. The company’s aggressive growth strategy, backed by substantial investment, could position it as a major player in the Indian beer market. However, achieving profitability will require careful execution, especially in a competitive landscape dominated by global giants. If successful, B9’s IPO in 2026 could offer significant returns for early investors.
