India: Bira 91 purchases Uttar Pradesh-registered Kamakhya Beer & Bottling Private Limited
Beer company Bira 91, based in New Delhi, has exchanged shares with Chhattisgarh Distilleries Private Limited to purchase Uttar Pradesh-registered brewing company Kamakhya Beer & Bottling Private Limited, the Asia Tech Journal reported on October 10.
Indian liquor producer CDL is the owner of several well-known brands, including Indian No. 1 Magnum Whiskey, Red Indian Rum, and Palm Beach Whiskey.
According to Bira91’s regulatory filings, the firm traded 10,000 of CDL’s Kamakhya Beer shares for INR 22.6 Cr worth of its pre-Series D compulsorily convertible preference shares.
Anuj Jain, Founder of Bira91, said, “We have acquired Kamakhya Beer & Bottling Private limited. The acquisition will help us expand our production capacity and cater to the increasing consumer demand across the region, however, (we) cannot disclose further details at this stage,” Bira91 founder Anuj Jain said.
Additionally, CDL is growing its share in the well-known brewer by investing an extra INR 11.3 Cr in Bira 91.
The purchase will enable Bira 91 to increase its manufacturing capacity and expand its market share in the nation.
Despite the pandemic, Bira 91 was able to lower its loss during the fiscal year 2020–2021 (FY21). Its loss decreased by 30%, from INR 304.8 Cr in FY20 to INR 211 Cr. Additionally, operational revenue decreased by 6.3% to INR 428.2 Cr from INR 457 Cr in FY20.
Due to lockdowns and other government-imposed restrictions designed to stop the spread of Covid-19 infections, bars, restaurants, and liquor stores were forced to close for the majority of the year, which could be the cause of the revenue decline.
The transaction takes place at a time when Bira 91 is apparently in discussions with both its current investor and the Japanese beverage company Kirin Holdings to raise an additional $70 Mn.
The Japanese alcohol company acquired a 10% share in Bira 91 for $30 Mn last year. According to the Reuters report, Bira 91 plans to purchase breweries and introduce new products using the additional capital. It appears that the first of these deals was the purchase of CDL’s Kamakhya Beer.
Sequoia, Sixth Sense Partners, and Kirin Holdings are a few of the investors in Bira 91, which has raised $210 million to date. It faces competition from brands like Kingfisher, Tuborg, SABMiller India, Som Distilleries and Breweries Ltd, and Anheuser-Busch Inbev in the $5 billion beer industry of the nation.
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