Exclusive: Bira 91 Acquires Brewery Kamakhya Beer From CDL In A Share Swap Deal

New Delhi-based beer maker Bira 91 has acquired UP-registered brewery company Kamakhya Beer & Bottling Private Limited, a subsidiary company of Chhattisgarh Distilleries Private Limited (CDL), in a share swap deal. 

CDL is an Indian liquor manufacturer which owns brands such as Indian No.1 Magnum Whiskey, Red Indian Rum, Palm Beach Whiskey, among others. 

As per Bira91’s regulatory filings accessed by Inc42, the startup has allotted INR 22.6 Cr (INR 2.7 Mn) 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. 

Bira91 confirmed the acquisition with Inc42. “We have acquired Kamakhya Beer & Bottling Private limited. The acquisition will help us expand our production capacity and cater to the increasing consumer demand across the region, however, (we) cannot disclose further details at this stage,” Bira91 spokesperson said. 

Besides, CDL is also investing an additional INR 11.3 Cr ($1.3 Mn) 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 in the country. 

Bira 91 managed to reduce its loss in the financial year 2020-21 (FY21) despite the pandemic. Its loss declined 30% to INR 211 Cr from INR 304.8 Cr in FY20. Revenue from operations also fell 6.3% to INR 428.2 Cr from INR 457 Cr in FY20. The drop in revenue could be attributed to the pandemic as pubs, restaurants and liquor stores remained shut for most part of the year due to lockdowns and other measures taken by the government to curb the spread of Covid-19 infections. 

The deal comes at a time when Bira 91 is reportedly in talks with its existing investor and Japanese beverages firm Kirin Holdings to raise a fresh funding of $70 Mn.

Last year, the Japanese alcohol maker invested $30 Mn in Bira 91 for a 10% stake. As per the Reuters report, Bira 91 would use the fresh funding to acquire breweries and launch newer products. The acquisition of Kamakhya Beer from CDL seems to be the first of such acquisitions. 

Bira 91 has raised $210 Mn till date, and counts Sequoia, Sixth Sense Partners, and Kirin Holdings among its investors. It competes with the likes of Kingfisher, Tuborg, SABMiller India, Som Distilleries and Breweries Ltd and Anheuser-Busch Inbev, among others  in the country’s $5 Bn beer market. 

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