This Indian craft beer maker is betting on a $70 million beer factory to take on global brews
Kirin Holdings Co. wants to overtake entrenched global brands by building a $70 million beer factory and raising fresh funds ahead of a public listing in 2026.
B9 Beverages Ltd is building a new brewing facility in the north Indian state of Uttar Pradesh, which, once completed, will become India’s biggest beer factory and expand production, founder and Chief Executive Officer Ankur Jain said in an interview. The company currently leases six brewing units and sells an equivalent of 8 million cases of beer a year.
The New Delhi-based company has also appointed investment bank Morgan Stanley to lead another round of fundraising ahead of the IPO.
“2023 was a very tough year for us because we underwent a very drastic transformation in our sales operations, supply chain, financial checks and balances,” Jain said. “It was a deliberate decision that caused a slowdown, but we are a much stronger company today.”
The new factory will cost between $60 million and $70 million and will have a capacity of 50 million cases, with its first phase expected to become operational by next summer, Jain added.
B9 overhauled its operations last year as it fights for a greater share of India’s beer market and works to turn profitable as losses have widened. Jain brought in Accenture Inc. and Boston Consulting Group last year to improve financial controls and supply chain management to generate more cash.
India’s beer sector is dominated by mass producers including United Breweries Ltd.’s Kingfisher and labels from Anheuser-Busch InBev
