In other cases, even the tiniest errors can lead to the biggest tragedies. Bira 91, one of the favorite craft beer brands in India, learnt this the hard way. The company was flying, had plans for an IPO, and all looked good. And after that, they swapped a single word in the name of their company — and all was lost.
Why Bira 91 Changed The Name?
In late 2023, Bira 91 was preparing to go IPO. When an Indian company is going public, it must remove the word Private at the end of its name. In January 2024, B9 Beverages Private Limited changed to B9 Beverages Limited. Simple enough, right?
The new name was registered by the company with the Registrar of Companies. Here is where it got a little sticky. They still used the old name on their beer bottles, packaging, and licenses. Still, the old stock was being sold even as the official name had changed.
What Went Wrong With Bira 91?
This entire story was posted on social media by investor D. Muthukrishnan. After the change of name, he said, all hell then broke loose.
Bira 91 began to be prohibited in states throughout India. Why? Since they viewed B9 Beverages Limited as an entirely different company from B9 Beverages Private Limited. It mattered nothing that it was the same business, the same beer, the same everything — only that the word Private was omitted.
The alcohol departments of each state now demanded:
- Brand new legal approvals
- New authorizations on all labels
- New product registrations
- Individual licenses for every kind of beer
The distribution came to a halt. Beer in warehouses remained unsold. Consider all those crores of rupees of stock sitting there, going to waste.
The Money Damage
The figures paint a grim picture. The sales of Bira 91 decreased by 25 percent in the period between July and September 2024 compared to the previous year.
During the entire financial year 2024, revenue decreased by 638 crore. The company recorded a huge loss of 748 crore, one of the worst years in its history.
Getting Back On Track, But At What Cost?
In time, Bira 91 obtained approvals again in most states and began to sell again in early 2025. But the damage was done. Months out of stock meant customers switched to other brands. The hype of the IPO was killed. And the founder was forced to retire.
Who’s Really To Blame?
Muthukrishnan pointed the finger directly at the bureaucratic system in India. He added that this was similar to a case handled by Hina Nagarajan, who headed Diageo India. She did not change the name to Diageo India Limited but retained the company name as United Spirits. She was aware that altering names in the alcohol business in India would cause an uproar.
He described what had befallen Bira as highly unfair, but this is the way India operates. His advice: consult professionals, read all the instructions, and do not assume everything will be easy.
Lessons To Be Learnt By Other Companies
This isn’t just about Bira 91. Any company operating in a regulated sector must be attentive.
First, even regular changes may work against you. What appears to be paperwork may turn out to be a matter of survival.
Second, there are various state-specific regulations in India. It is not one government you are dealing with — it is dozens of governments.
Third, it is extremely difficult to regain a market position once lost. Customers move on fast.
The Bigger Problem
Bira’s story highlights a significant issue with conducting business in India. The alcohol industry especially deals with complex regulations that vary from state to state. What’s fine in one place may get you banned in another.
A company makes one corporate change at the top, and suddenly, they need separate approvals from authorities in every single state. It’s exhausting and expensive.
Can Bira Bounce Back?
Bira 91 is selling beer again, but they’ve lost a lot. They missed peak sales months, burned through cash, and watched their IPO dreams vanish. Leadership changed. Consumer trust took a hit.
Recovery is possible but tough. They need to win back customers, convince distributors they’re stable, and prove to investors this was just a temporary setback.
Conclusion
Bira 91’s collapse wasn’t due to bad beer or poor business decisions. It was a procedural mistake that spiraled out of control thanks to India’s complicated regulatory system.
The lesson? In India, you can’t assume anything is straightforward. Even removing one word from your company name can destroy everything you’ve built. Get expert help. Follow every regulation. Prepare for the worst.
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