B9 Beverages (Bira Beer, i.e. BIRA91 Ltd | Latest Share Price & Updates

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Company Overview

B9 Beverages Private Limited, (formerly Cerana Beverages), is owner of the most popular Indian craft beer brand – Bira 91. The company started out in 2015 by importing craft beers from Belgium and within 3 years of starting Bira91, the flagship brand, is ranked amongst top 25 craft beer brands of the world by turnover and counted as the world’s fastest growing beer brand in 2017. In 2019, the company emerged as India’s first beverage brand to become sponsor of ICC World Cup & T20 World Cup series for five years. 

In January, 2021, the company raised $30 million from Japan’s Kirin Holdings with a valuation of around $ 300 million. The investment was split 50: 50 between equity and debt. In May, 2020, amid pandemic, the company also raised $20 million from its existing investors Sequoia Capital and Sofina. In 2019, Bira91 raised $4.3 million from Sixth Sense Ventures at a valuation of $246 million. Besides, the company counts many celebrities – Farhan Akhtar, Zoya Akhtar, Ritesh Sidhwani, flipkart CEO Kalyan Krishnamurthy as its investors.

Business Model

B9 Beverages is India’s fourth largest brewer of craft beer behind Heineken, Carlsberg, and Anheuser-Busch InBev. Started in 2015 from New Delhi, the company is engaged in the business of brewing and distribution of craft beer. The company’s first brewery unit was located in the Flanders region of Belgium and now the company operates four breweries in India with distribution in New York, New Jersey, Philadelphia, Boston, Singapore, and Nepal. 

The company currently has a production capacity of 2 million hectoliters which makes up for 5-10% share of the beer market in cities such as New Delhi, Mumbai and Bengaluru. The company is planning to open its fifth brewery in Madhya Pradesh with a production capacity of 400,000 hectoliters before the end of the year.

Bira plans to bring its craft beer brand to the masses. Under this strategy, the company opted to lease i/o ownership of its breweries. This allowed the company to sell its craft beer from liquor retail shops as many state regulations permit the microbreweries to sell outside only through restaurants and bars, not through liquor retail stores. Bira is allowed to sell through retail stores as it does not own its microbreweries.

Further, the company pitched its premium products in the price range of Rs 125-140 for its 330 ml bottle and 500ml can, making the craft beer affordable to the price sensitive Indian market. 

Currently, bira derives 70% of its revenues from restaurants and bars while the remaining 30% comes from retail. But with its aggressive retail strategy, this ratio is expected to touch 50:50 when the retail segment will start giving its much desired volumes and bring it closer to profitability.   

 

Brands:

Light Beer

White Ale Beer

Strong Ale Beer

Blonde Lager Beer

IPA

Boom Strong

Boom classic

Registered Address

The company has its headquarters located at H-106, 2ND Floor, Outer Circle, Connaught Place, New Delhi. The company has four breweries in India located at Indore, Mysore, Nagpur, Kovur and offices in nine cities including New York City with more than 600+ employees working for the company.

Symbol:B9 Beverages (Bira Beer) Ltd
Face Value (₹):10
ISIN:INE833U01014
Demat Status:NSDL Only
Lot Size:25 Shares

Board of Directors

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Key Business Highlights

  • Most recognisable brand in craft beer segment. The craft beer market to grow at around 11% CAGR from 55 million litres (2020) to 90 million litres (2025), making Bira, an industry leader, an ideal growth bet.   
  • The company has switched from importing to domestically sourced beer, and has launched mass-market brands (Bira Boom) to drive down the prices and increase the sales volume. The company has its own manufacturing plants at Indore, Nagpur, Mysuru and Kovur. 
  • Bira is present in key international markets – USA, UK, UAE, Singapore, Thailand, Hong Kong.  Bira is the first Indian beverage brand to sign a 5-year sponsorship of the ICC Cricket World Cup, ICC T20 World Cup, ICC World Test championship. 
  • Backed by Strong Investors – Sequoia Capital, Sofina & Japanese Kirin Holdings. The total Bira Share Price was valued at around $300 million during its last funding round in January, 2021.

Financial Highlights

Bira91 Abstract P&L

Particulars2021-22(Crores’)2020-21(Crores’)% Change
Gross Revenue 787.00455.873%
Net Revenue371.10208.2078%
COGS (Material Costs + Overheads)215.50121.7077%
Material Costs148.8075.1098%
Gross Margin (Net of Material Cost)222.40133.2067%
Overheads66.7046.7043%
Gross Margin (Ex Brewery)155.7086.5080%
Supply Chain Expenses57.6029.9093%
Gross Margin Net of Supply Chain Expenses98.1056.5074%
Sales & Marketing186.1051.60261%
Manpower65.3059.0011%
G & A 64.3055.1017%
EBITDA-217.60-109.20-99%

Annual Results 

Particulars2019-202018-192017-18
Total Income (₹ Crores) 463.64360.09160.25
PAT (₹ Crores) -417.41-135.04-21.37
Diluted EPS -325.82-105.45-17.91
Book Value per Share (₹) 7.45117.1246.17
Equity (₹ Crores) 18.26261.41108.89

Financial Charts

Shareholding Pattern

Peer Comparison

The largest Indian beer production companies are United Breweries (Kingfisher brand), SAB Miller (Haywards), Heineken, Carlsberg (Okocim, Tuborg), Mohan Meakin, Anheuser-Busch (Budweiser) and Molson Coors. 

The major listed companies are United breweries and United spirits.

CompanyProfitability MarginROCEROED/E RatioP/E RatioP/B Ratio
United Breweries6.23%5.53%9.54%6.25125.8611.46
United Spirits9.23%8.46%20.61%22.9377.8215.06

Media Updates

“B9 Mopping for another round of funding from PE”

Bira91 is looking to raise around $100 mn for growth capital, expansion plans and marketing spends by selling a minority stake. Investment bank Lincoln International has been mandated for the proposed transaction.

The firm had raised $30 mn from Japanese integrated beverages Kirin Holdings in January 2021. That transaction valued the Bira91 between $230 mn to $240 mn.

Gateway Brewing Company, Independence Brewing Company and White Owl are some of the  domestic rivals of Bira 91.

“Bira 91 raises $30 million from Japan’s Kirin Holdings”

Kirin Holdings , Japanese integrated beverages company made its first investment in India. Kirin will hold less than 10% stake in Bira 91 in form of 50% equity and 50% debt. This transcation have valued Bira91 at around $300 million.

The company, founded in 2015, has around 10% market share in the Mumbai, Delhi and Bengaluru markets. “Bira 91 will infuse these funds in business expansion and maintain working capital,” the company said.

Read more at: https://economictimes.indiatimes.com/tech/funding/bira-91-raises-30-million-from-kirin-holdings/articleshow/80100950.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

“Bira91 raises $30 mn funding led by Sequoia India, Sofina”

B9 Beverages Pvt. Ltd, the maker of Bira 91 brand of craft beer, has raised $30 million in funding led by its existing investors, Sequoia India and Belgium-based investment firm Sofina.The equity financing round also saw participation from Mumbai-based consumer-focused venture capital fund, Sixth Sense Ventures, Korean private equity fund Neoplux, and certain family offices.

Last year, the firm commissioned two new breweries, one each in Andhra Pradesh and Karnataka, and quadrupled its production capacity. With the launch of Boom, its latest mass market beer brand, the company achieved a market share close to 3% of the overall beer market, along with presence in over 400 cities, as of fiscal year ended 31 March 2020.

Read More : https://www.livemint.com/companies/news/bira91-raises-30-mn-funding-led-by-sequoia-india-sofina-11587818304344.html

“Indian Beer Brand Bira 91 Wins Big At European Beer Challenge 2020”

  • Bira 91 has won the European Beer Challenge 2020.It bagged five medals across categories.
  • The Bira 91 Indian Pale brewed with Pomelo won a double gold medal.
  • The crisp and refreshing Blonde Summer Lager won a gold in the lager category.
  • Rich and malty, Bira 91 Boom Strong won a silver, and their flagship wheat beer Bira 91 White received the bronze.

Read More: https://odishatv.in/health/indian-beer-brand-bira-91-wins-big-at-europeon-beer-challenge-2020-497758

Frequently Asked Questions (FAQs) on B9 Beverages (Bira) Unlisted Shares

The buying and selling of unlisted shares, and pre-IPO shares is fully legal and valid.

The procedure to buy the B9 Beverages (Bira) shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. Once the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.

The B9 Beverages (Bira) shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for CSK, please visit the stock page on our website: www.delistedstocks.in/current-offerings/current-offerings/b9-beverages-birla-beer-ltd/

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your B9 Beverages (Bira) shares. But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.  

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell B9 Beverages (Bira) shares just like domestic investors. But their investment is on a non-repatriable basis. 

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