Below is the management commentary, as to how Bira has performed in the year 2018-19. The transcript is extracted from the annual filing, which is looking promising as far as growth and expansion are concerned.
(i) During the Last One Year, Bira continued to grow significantly and maintained its position in the premium beer market going on to set up India’s largest dispense beer network in restaurants and bars across the country.
(ii) The Company during the year has also expanded its sales operations in Nagpur and Indore by enhancing its existing production capacity to meet the demand of the consumers and to capture new markets.
(iii) The Company expands its sales operations and makes its presence felt in Delhi, Haryana, Chandigarh, Uttar Pradesh, Rajasthan, Madhya Pradesh, Chhattisgarh, West Bengal, Telangana, Maharashtra, Goa, Andhra Pradesh, Karnataka and Puducherry and planning to add few more in coming years. Further, in addition to ongoing Breweries located at Indore, Mysore, and Nagpur, the Company is also planning to enhance its production by
setting up new breweries in Telangana.
(iv) The Company focused on expanding its ability to service consumer wants – increasing its geographical presence globally as well by entering into the market of the United Kingdom (UK), Nepal, Singapore, Hong Kong, UAE and Bahrain in addition to the USA.
(v) During the year, the Company has come up with a new Brand-named Boom and it has shown an early success for the Company within 8 weeks of its launch and crossed over 2,30,000 Cases in dispatch for the liquid.
(vi) The Company during the year has come up with a major Partnership with International Cricket Council (“ICC”) and BIRA91 has become the official Sponsor for the ICC Global Tournaments including the ICC Cricket World Cup, ICC T20 World Cup, ICC World Test Championship, ICC Champions Trophy and ICC Women’s World Cup. The partnership will cover all aspects including pitch branding, branding on perimeter boards, broadcasting branding, exclusive pouring right across the stadium, hospitality opportunities, bar and screening
(vii) As an official partner, Bira 91 will integrate the partnership across broadcast and digital platforms, and in-venue activations at all ICC events through their range of products. The ICC partnership is a key moment for Bira 91 as it
embark on creating the first global consumer brand to come out of India.
The company has clocked a revenue of Rs.192 Crores in FY18-19, an increase of 20% from last year. The losses have almost doubled to Rs.200 crores as compared to Rs. 100 crores last year. Let us see why losses have doubled up.
1. Employee benefits expense has gone up in from Rs.37 Crores in FY17-18 to Rs.45 Crores in FY18-19.
2. Finance cost has doubled to 19 Crores in FY18-19 as compared to 8.3 Crores last year.
3. Other expenses have gone up from 139 Crores in FY17-18 to 196 Crores in FY18-19.
As the company is in the growth phase, the losses are bound to happen. The company is expecting a break-even in FY20-21, said Ankur Jain, owner of Bira Beer.
Bira Beer latest funding
Recently, in Nov-19, the company has raised funding of Rs.20 Crores from Shinhan Neoplux Energy Newbiz Fund, Impulse International and two more individuals, valuing the company at Rs.2400 Crores.