Why FMGC giant Britannia Industries is closing its iconic Taratala factory in Kolkata- Explained

Britannia Industries is closing its historic Taratala factory in Kolkata, offering VRS packages to all 150 workers. Established in 1947, the factory is being shut down as Britannia shifts focus to on modern facilities.

Livemint, Written By Shivangini
First Published25 Jun 2024, 10:00 AM IST
Britannia Industries' historic Taratala factory in Kolkata, set for closure, as the company shifts focus to modern facilities
Britannia Industries’ historic Taratala factory in Kolkata, set for closure, as the company shifts focus to modern facilities

Britannia Industries has closed 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, The Times of India reported.

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"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, per the TOI report.

This decision follows the] closure of Britannia's factories in Mumbai and Chennai. The Taratala factory, located on 11 acres belonging to Kolkata Port, had its lease agreement renewed in 2018 for 30 years, extending to 2048. Kolkata Port sources said the factory's output was no longer economically viable, as per the TOI report.

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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,  the TOI reported.

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 up to 350 crore in a new facility in Bengal, marking a significant investment in the state after a hiatus, the report added.

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In addition to the Taratala unit, Britannia operates a contract manufacturing unit near Dankuni. Britannia Industries is one of India's leading food companies, with Bengal representing its third-largest market, generating over 900 crore in revenue.

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First Published:25 Jun 2024, 10:00 AM IST
HomeCompaniesNewsWhy FMGC giant Britannia Industries is closing its iconic Taratala factory in Kolkata- Explained

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