Britannia Industries, a leading food company in India, has announced the closure of its factory in Taratala, Kolkata, marking the shutdown of its second oldest manufacturing unit in the country, established in 1947. The company has notified stock exchanges that all workers at the Taratala factory have been offered and accepted Voluntary Retirement Scheme (VRS) packages, as per a Times of India report.
“The closure of this 150-worker unit is not expected to significantly impact the company or the state’s revenue,” a source close to the company stated, as quoted by TOI.
This decision follows the earlier closures of Britannia’s factories in Mumbai and Chennai. The Taratala factory, located on 11 acres of leasehold land belonging to Kolkata Port, had its lease agreement renewed in 2018 for 30 years, extending to 2048. Port sources suggest that the factory’s output was no longer economically viable due to its age, as per TOI.
Britannia is shifting its focus to shutting down older, less efficient factories near city centers and establishing modern facilities with higher production capacities. The future use of the Taratala land remains uncertain, despite the company holding 24 more years on the lease, according to a port trust source, as per the report.
The Taratala factory has been crucial for manufacturing, planning, logistics, and sales operations in the eastern region. In 2018, Britannia chairman Nusli Wadia announced at the company’s Annual General Meeting (AGM) in Kolkata that Britannia was planning to invest ₹300-350 crore in a new facility in Bengal, marking a significant investment in the state after a long hiatus, the report added.
In addition to the Taratala unit, Britannia operates a contract manufacturing unit near Dankuni. Britannia Industries remains one of India’s leading food companies, with Bengal representing its third-largest market, generating over ₹900 crore in revenue.
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Published: 25 Jun 2024, 10:00 AM IST