Bira 91 makers transfer to promote an asset because it fails to clear wage, PF dues: Report

B9 Drinks, the craft beer maker behind the Bira 91 model, has reportedly moved to promote certainly one of its belongings in an effort to lift funds for clearing excellent worker salaries and provident fund dues. The transfer is geared toward assuaging crucial money stream constraints which have left greater than 250 workers with unpaid wages for over six months and halted the corporate’s manufacturing since July.

In keeping with a report in The Financial Occasions, founder Ankur Jain knowledgeable workers {that a} purchaser has been discovered, and the proposed sale might present what he described as “quick money” for the financially distressed firm. 

In a letter to the staff, Jain said that they’ve despatched the proposal to key lenders and shareholders yesterday and are hopeful of well timed consent. Nevertheless, he declined to call the particular asset concerned within the sale. The corporate can also be working to safe approval from main stakeholders together with Kirin Holdings, Anicut Capital, and Peak XV.

Jain additional informed the monetary day by day that the corporate has recognized varied avenues to resolve dues for workers and restoration of enterprise together with sale of sure non-core belongings. The asset sale is a part of broader efforts to handle unpaid salaries, arrears, and reimbursements relationship again to November 2024, in addition to pending TDS for over 50 workers from the final monetary yr.

Regardless of the said urgency, the sale has been met with scepticism from some buyers who’ve expressed issues that they aren’t conscious of the customer and if there’s a agency supply or a time period sheet.

Jain’s letter detailed the anticipated results of the sale, stating that the sale would “allow quick resolution to some crucial areas, together with worker provident fund (PF) dues, payroll for the underside 50% of workers (together with ex-employees) and resumption of enterprise in key markets.” 

B9 Drinks reported a internet lack of Rs 748 crore in FY24, exceeding its income of Rs 638 crore, as quantity gross sales declined to 6-7 million circumstances. It has not but filed FY25 earnings.