New Delhi: Glass manufacture Hindusthan National Glass & Industries (HNGIL) has sent a legal notice to B9 Beverages, alleging that the craft beer maker "has defaulted on payments and obligations" amounting to more than ₹8 crore. This adds to the woes of B9 Beverages, the maker of craft beer Bira 91, which is already seeing a legal battle between founder Ankur Jain and the company's investors. There are also allegations of delays in salaries and payments to multiple vendors.
HNGIL, which also supplies glass bottles to Diageo, Bacardi, Coca-Cola and Nestle, has alleged in its notice that "B9 had approached it for the manufacture and supply of customised glass with technical specifications, branding requirements and commercial terms mutually agreed between the parties".
ET has accessed a copy of the notice. According to the legal document, which has been marked to all investors of B9 Beverages, including Peak XV Partners, Sofina and Kirin Holdings, the company did not pick 5.142 million customised glass bottles, rendering them commercially unusable and locking up significant working capital for the glass maker.
Suraj Mehta, chief strategy officer of HNGIL, confirmed in an email response that a legal notice has been issued to B9 Beverages in relation to "certain commercial and contractual issues". Mehta declined to share details, saying the matter is under legal consideration. Founder Jain said in an email response that the company receives "legal notices from several partners due to over dues". He added that he is "unable to confirm the veracity of the claim at this point."
Bira 91, which Jain set up in 2015, made its niche as a craft beer brand in its early days and attracted prominent investors, including Peak XV Partners, Sofina and Kirin Holdings of Japan. However, regulatory glitches, delays in licences, aggressive cash burn, high investments on breweries and a name change drained the craft beer brand's financials.
In FY24, B9 Beverages reported a net loss of ₹748 crore.
While production at the company has been suspended, Jain and the investors are said to be negotiating the terms for him to step down from his role. In October last year, several hundred employees of B9 Beverages had sent out letters to multiple government authorities citing "non-payment of salaries and lack of settlement of final dues for employees who were laid off."
HNGIL, which also supplies glass bottles to Diageo, Bacardi, Coca-Cola and Nestle, has alleged in its notice that "B9 had approached it for the manufacture and supply of customised glass with technical specifications, branding requirements and commercial terms mutually agreed between the parties".
ET has accessed a copy of the notice. According to the legal document, which has been marked to all investors of B9 Beverages, including Peak XV Partners, Sofina and Kirin Holdings, the company did not pick 5.142 million customised glass bottles, rendering them commercially unusable and locking up significant working capital for the glass maker.
Suraj Mehta, chief strategy officer of HNGIL, confirmed in an email response that a legal notice has been issued to B9 Beverages in relation to "certain commercial and contractual issues". Mehta declined to share details, saying the matter is under legal consideration. Founder Jain said in an email response that the company receives "legal notices from several partners due to over dues". He added that he is "unable to confirm the veracity of the claim at this point."
Bira 91, which Jain set up in 2015, made its niche as a craft beer brand in its early days and attracted prominent investors, including Peak XV Partners, Sofina and Kirin Holdings of Japan. However, regulatory glitches, delays in licences, aggressive cash burn, high investments on breweries and a name change drained the craft beer brand's financials.
In FY24, B9 Beverages reported a net loss of ₹748 crore.
While production at the company has been suspended, Jain and the investors are said to be negotiating the terms for him to step down from his role. In October last year, several hundred employees of B9 Beverages had sent out letters to multiple government authorities citing "non-payment of salaries and lack of settlement of final dues for employees who were laid off."
