Kamakhya Beer & Bottling is a subsidiary of CDL. The parent company has also invested an additional Rs 11.3 Cr in Bira 91, further increasing its stake in the popular beer maker

Beer maker Bira 91 has acquired brewery company Kamakhya Beer & Bottling, a subsidiary company of Chhattisgarh Distilleries (CDL), in a share swap deal. CDL owns brands such as Indian No.1 Magnum Whiskey, Red Indian Rum, Palm Beach Whiskey, among others.

As per Bira 91’s regulatory filings accessed, the startup has deployed Rs 22.6 crore worth of its pre-Series D compulsorily convertible preference shares (CCPS) to CDL in exchange for 10,000 shares held by the latter in Kamakhya Beer.

CDL is also investing an additional Rs 11.3 Cr in Bira 91, further increasing its stake in the popular beer maker. The acquisition will help Bira 91 scale up its beer production capacity to gain further market share across the country.

Despite the pandemic, Bira 91 managed to reduce its loss in the fiscal year 2020-21 (FY21). Its loss fell 30 per cent to Rs 211 Cr from Rs 304.8 Cr in FY20. Revenue from operations fell 6.3 per cent to Rs 428.2 crore from Rs 457 crore in FY20. The drop in revenue could be attributed to the pandemic, as pubs, restaurants, and liquor stores were closed for the majority of the year due to lockdowns and other government measures to prevent the spread of Covid-19 infections.

Bira 91 is reportedly in talks with its existing investor, Japanese beverage company Kirin Holdings, to raise $70 million in new funding.

Bira 91 has raised $210 million to date, with investors including Sequoia, Sixth Sense Partners, and Kirin Holdings. In the country’s $5 billion beer market, it competes with Kingfisher, Tuborg, SABMiller India, Som Distilleries and Breweries, and Anheuser-Busch Inbev, among others.

Categories: Other News

Tags: Funding, Investment, Startup