Bira 91’s brewery output allegedly nosedives after Andhra exit; company claims pivot to asset-light model

Bira 91 Shuts Andhra Unit, Output Allegedly Falls Sharply Amid Excise Dispute and Revenue Decline. Expert Analysis : Production Shutdown: Bira 91 shut down its Andhra Pradesh facility in March due to allegedly excise defaults, cutting monthly output from 22 lakh to 10,000–20,000 cases. Loss of Key Facility: The Andhra unit, producing 7 lakh cases/month (25–30% of total output), was vacated, and the contract was terminated. Previous Production Capacity: According to sources, Bira 91’s total capacity was 22 lakh cases/month, with Andhra Pradesh and Mysuru at 7 lakh each, Nagpur at 3 lakh, and Madhya Pradesh at 4 lakh. Excise Dues Led Shutdown: Andhra unit shut in March over unpaid excise dues; company denies promoter involvement in tax clearance, indicating operational and financial strain. Excise Compliance in Andhra: Andhra Pradesh’s strict excise norms hold both license holders and operators jointly liable for timely duty payments in sub-leased breweries. UP Market Re-entry: The company announced its return to Uttar Pradesh with an in-state manufacturing partner and a Rs 200 crore+ brewery investment. Funding History and Valuation: Bira 91 has raised over $495 million via 16 equity and 4 debt rounds; the latest $25 million Series D in March 2024 valued it at over $523 million. Revenue Decline and Losses: Bira 91’s net revenue fell from ₹434 crore in FY24 to ₹357 crore in FY25, with EBITDA at a negative ₹255 crore.