“All of you are aware that the company needs urgent capital in order to initiate payments of employee dues and resume its business in key markets. I am making all attempts to ensure immediate capital infusion is done in the company. In order to bring immediate cash to the company, I have found a buyer for one of the company's assets. The sale of this asset will enable immediate solution to some critical areas,” Jain said in the letter. Business Standard has reviewed a copy of the letter.
Jain did not respond to email enquiries till the time of going to press.
“However, in order to complete the sale of this asset, consents need to be obtained from key lenders and shareholders. We have sent the proposal to key lenders and shareholders yesterday (Wednesday), and are hopeful of positive and timely consents on the same,” he added.
The company may, however, find it challenging to sell the asset. According to several former and current executives, as well as other sources familiar with the company, it has three significant assets — BTB, which operates Beer Cafe, the Bira brand, and a piece of land in Bijnor, Uttar Pradesh.
Last week, B9’s investors Kirin Holdings and lender Anicut Capital took possession of the pledged shares of the cafe operator.
The sale of the brand name will also not be easy, according to sources.
“Shareholders will not allow the sale of the brand as it still carries value and they want to keep it going. It is also not an easy process. The remaining asset is the physical piece of land,” a source said on the condition of anonymity.
The Bijnor land is secured by IDFC First Bank Limited for ₹65.60 crore, according to filings with the Registrar of Companies. B9 had acquired the land in 2022.
In his letter, Jain stated that the sale proceeds would help address critical challenges, including employee PF dues, payroll for the bottom 50 per cent of employees (including former employees), and resumption of business in key markets.
Jain’s letter to his employees comes even as the beer maker faces renewed trouble from investors as well as current and former employees. Last month, approximately 90 former and current employees of the company wrote an open letter addressed to central government authorities, including the Ministry of Labour and Employment and the Income Tax Department, highlighting the non-payment of salaries and PF for seven months, as well as tax deducted at source (TDS)-related violations.
According to sources, Jain’s shareholding in the business dropped to mere decimal points after Suni Munjal, chairman, Hero Enterprise, decided to invoke his shares in the company
The company had taken a loan of over ₹200 crore from Munjal, of which ₹125 crore remains unpaid. To secure this loan, Day1 Advisors, owned by Jain and his father Ashok Jain, had pledged its shares in the beer maker
The Delhi High Court on October 30 declined interim relief to Day1 Advisors in the dispute
According to financial data accessed by business intelligence firm Tofler, B9 Beverages reported a 31.5 per cent drop in revenue from operations to ₹554.8 crore in 2023-24 (FY24) from ₹810.1 crore in the year-ago period. Meanwhile, its net loss rose to ₹643.5 crore from ₹391.4 crore in FY23.
According to latest data from Tracxn, institutional investors hold 28.6 per cent stake in the company, led by PeakXV, Sofina, Sixth Sense, MUFG, and Tiger Pacific. Kirin Holdings holds 20.3 per cent.
 "B9 Beverages founder and Chief Executive Officer (CEO) Ankur Jain (Photo: StartupTalky)")