Bira Unlisted Share

Company Overview:

A refreshingly modern beer brand, Imagined in India, Bira 91 aspires to bring flavorful beers to the new world. As one of the fastest growing brands in the world, Bira 91 has built a diverse portfolio of award-winning beers, one for every occasion, and aims to drive the global shift in beer towards more colour and flavor. Bira 91 is now available in over 500 towns and cities spread across 15 countries and brews its beers across five breweries in India. Bira 91 has its flagship taproom in Bangalore, where it releases one new experimental beer every week, paired with its curry-shop menu. Bira 91 also offers branded merchandize across categories such as glassware, apparel and gifts, to make every day a lot more playful.  It has created a very strong portfolio of beers and aims to come up with more colours and flavours and bring a global shift. The beer is made from wheat, barley, and hops and is available in various drafts such as 330ml, 650ml bottles, and 500ml cans. The company now has four breweries in India. They offer various types of beers such as light beer, strong ale, boom strong, classic beers, white ale, blonde lager, and much more. The first brewery unit of the company was actually located in the Flanders region of Belgium, a craft distillery was used to manufacture the beer with ingredients from the Himalayas, France, Belgium, and Bavarian Farms, then the beer was finally imported to India. After the initial success, the company began manufacturing the beer in India with the same ingredients. In 2017, Bira 91 vaulted to New York City to start its campaign in the United States, and in 2018, the brand expanded its spread to the Asia Pacific market by entering Singapore. Established in 2015, Bira 91 is driven by a dynamic team of over 600+ passionate beer lovers and is backed by Sequoia Capital India, Sofina of Belgium and Kirin Holding of Japan. Over the last 7 years, the business has scaled across the country and the manufacturing footprint bumped up to 5 breweries across India to support the growth. In parallel, Bira 91 is on a mission to be a net-zero carbon emissions company by 2025. It plans to achieve this goal by making a shift towards clean energy and consuming 60 percent lesser energy, halving water consumption, making packaging sustainable and ensuring that no waste is sent to landfills. Bira 91 partnered with NH1design to communicate their vision for its sustainable future, to the industry, their business partners and most importantly, the consumers.

Mission Statement:

A refreshingly modern beer brand, Bira 91 aspires to bring flavorful beers to the new world. The brand is positioned as creative and playful, brewing beers for a modern India with the ambition to become the beer of choice for this generation of Indian consumers. 

Products Offered:

• Beers

• Merchandise

Bira91 Business Strategy:

• Craft Beer:

The craft beer segment in India is finding a steadily growing market in India’s metros, and it is of little surprise that this global trend is most popular among aspirational, well-travelled Indians. And local is the underlying principle for craft beers, to which end Bira 91’s latest offerings are styled as ‘Imagined in India’ – an attempt to bring together the many flavours of India and its creative energy fuelled by emerging artists, entrepreneurs, and start-ups. “Each beer is brewed with unusual ingredients – local and seasonal – which makes them unique and bursting with flavour. Experimental, creative, limited, each of these flavours – Bollywood IPA, Kokum Sour, Brown Ale, and Mango Lassi – is sure to elevate the beer experience of Indian consumers.” This isn’t the brand’s first foray in limited editions though; earlier offerings include Malabar Stout and IPA Brewed with Pomelo.

• Limited Edition Beer:

To try a ‘limited’ release is an experiment, at least for the domestic market. “Limited releases help push the envelope on beer and bring experimental products to consumers”. “As a rapidly growing brand, there is a strategic imperative to always keep improving, creating and setting new benchmarks. The driving force of our innovation wagon has been gathering imperative consumer feedback from their ‘taproom’ and amalgamating the right flavours and mixtures to create extraordinary beers for consumers. The ‘taproom’ is a place where they host consumers and let them try out new variants of brews. It has 20 beers on tap, the most of any microbrewery or taproom in India. Within just a year of its launch, Bira 91’s limited release taproom has been awarded the People’s Choice Award for the best Micro-brewery/ taproom at 30 ‘Best Bars in India’ awards. The Imagined in India beers that are being brought into the market have been fuelled by the positive response received for them at our Taproom in Koramangla, Bengaluru.”

• Design led growth:

In an increasingly visual and crowded market, catching the eyeballs is crucial. While beer labelling has none of the complexity associated with wine, it is also not a space that has generally attracted attention. However, Bira has never shied away from using bold colours and designs, and ‘Imagined in India’ pushes the envelope in this regard too. “The first touchpoint for consumers with a brand is packaging and design’. “The reason for partnering with different designers for packaging was so to make sure that just like the taste, the design of each beer has a different story to tell.” “Bira 91 is highly focussed on developing colourful and modern packaging that immediately grabs consumer attention and delivers clutter breaking shelf presence. For Imagined in India, Bira collaborated with Kulture Co. (a curated platform spearheading the new wave of Indian Graphic Art) to onboard artists, who are breaking the mould and taking modern India to new frontiers – to conceptualise and design the packaging of the four new flavours. The artists have done an amazing job to showcase a vibrant palette of local stories around shared identities painted onto these beer cans and narrating the story of our home country. 

Bira Growth Drivers:

Beer is one of the most popular alcoholic beverages produced by extracting malted cereal grain, flavored with hops, and brewed by slow fermentation

• The beer market was valued at 5,533.73 Mn ltrs in terms of volume in 2020 and is expected to reach 9,004.74 Mn ltrs by 2025, expanding at a CAGR of 10.89% during the 2021 – 2025 period.

• The maximum levels of beer consumption in India are observed in the southern states. The healthy growth rate for the beer industry is an indication of the huge potential of opportunities open for breweries and beer brands marketing and/or manufacturers in India.

• Based on type, the market is segmented into strong beer, mild beer, and craft beer.

• Strong beer contributed the largest revenue share in 2020, while the craft beer segment is estimated to be the fastest-growing segment over the forecast period

• In terms of volume of strong beer, the market was valued at 4,379.87 Mn ltrs in2020 and is expected to reach 5,728.16 mn ltrs by 2025, expanding at a CAGR of 5.19% during the 2021 – 2025 period.

• The Indian beer market continues to grow in line with expectations. Industry volumes grew at a CAGR of 8% during the last five years. There has been a trend of emergence of brew pubs in large cities such as Bengaluru, Pune and Gurgaon over the last few years.

• India is one of the fastest growing alcoholic beverages markets globally with an estimated market size of 52.5 bn dollars (about Rs 3.9 lakh crore), the Indian Council for Research on International Economic Relations (ICRIER) has said.

• The number of people consuming alcohol increased from 21.9 crore in 2005 to 29.3 crore in 2018 and is projected to increase to 38.6 crore by 2030.

• Pub and bar culture in India is escalating at significant pace, and is becoming more popular in the age group of 20-45. Further, the market is anticipated to grow at a CAGR of 10.9% over the forecast period as alcohol consumption is growing in urban areas of the country.

• Further, the craft beer segment is expected to reach US 900.0 million by the end of the 2030. Bira beer is emerging brand of Craft beer in India. 

Promoters and ShareHolding Pattern:

Peer Comparison:

Financials:

Source: Company Filing Form AOC-4

Source: Company Filing Form AOC-4

Source: Company Filing Form AOC-4

Source: Company Filing Form AOC-4

Valuations:

Over the last 3 years, revenue has grown at a yearly rate of 70%. Products are very popular and the demand is increasing day by day. Its very good for the company and its management. Currently the market share of Bira is 12%. Company is spending aggressively to expand the capacity , the fixed assets has grown by 65% CAGR in the last 3 years because the company is in growing phase and expanding there business. Company has raised $180 Mn in last 15 funding rounds and is backed by some lead investors. Free cash flow has witnessed a decrease over the last 1 years. As company has raised funds to support the long term projects such as establishing manufacturing unit, that's why they have liquidity crunch and negative free cash flow as of now. The net profit as well as net profit margin is falling due to increase in employee and marketing related cost. The assets of the company has increased but on the other hand company has reported loss in the last years because of which ROA of the company is increasing negatively.