India: Beer company Bira 91 reports 15% rise in operating income

Delhi-based beer company Bira 91 reported a 15% rise in operating revenue for FY23, hitting ₹824.3 crore ($111 million), and a total revenue, including other income, of ₹848.7 crore ($114 million). The increase marks significant progress towards the ₹1,000 crore milestone. Despite the growth, the firm's net loss expanded by 12% due to higher excise duty, procurement costs, and employee expenses. Nevertheless, the EBITDA margin showed improvements, Investing.com reported on November 6.

The company, founded by Ankur Jain in 2015 and now recognized as India's fourth-largest beer company, has a presence in over 550 towns and cities across 18 countries. Bira 91 maintains a production capacity of 250 million liters and employs a workforce of approximately 897 people. It competes with established players like Diageo, United Breweries, Pernod Ricard India, and startups such as White Owl Brewery and Simba.

In recent years, Bira 91 has broadened its product line beyond alcoholic beverages. Since 2020, the company has included non-alcoholic drinks in its portfolio and expanded its brand stores through acquisitions. The strategic diversification seems to be part of the company's efforts to solidify its market position ahead of a planned IPO.

To fuel its growth and expansion efforts, Bira 91 raised over $263 million from investors including Peak XV Partners, Sofina Ventures, Kirin's Holdings, and MUFG Bank. The latter recently invested $10 million into the company.

Meanwhile, competitor Proost secured ₹25 crore ($3.4 million) in pre-Series A funding, indicating an increasingly competitive landscape in India's beer market.