Britannia Shutters 77-Year-Old Factory! Will 150 Workers Lose Jobs? Click to Know!

Britannia Industries has closed its 77-year-old Taratala factory in Kolkata, with all 150 workers opting for Voluntary Retirement Scheme (VRS) packages. The closure is part of the company’s strategy to shift from aging factories to modern, high-capacity facilities. Despite the shutdown, Bengal remains a key market for Britannia, contributing ₹900 crore in annual revenue.

Britannia Closes Historic Kolkata Factory

Britannia Industries has shut down its Taratala factory in Kolkata, one of its oldest manufacturing units, established in 1947. According to The Times of India, the company informed stock exchanges that all 150 workers employed at the facility have opted for and accepted Voluntary Retirement Scheme (VRS) packages.

Impact of the Closure

A source close to Britannia stated that the factory’s closure is unlikely to have a major impact on the company’s operations or the state’s revenue. This move aligns with Britannia’s recent decisions to shut down other aging factories in Mumbai and Chennai.

The Taratala plant, spanning 11 acres on land leased from Kolkata Port, had its lease renewed in 2018 for a period extending until 2048. However, sources from Kolkata Port cited in the TOI report indicated that the unit was no longer economically viable, leading to its closure.

Britannia’s Modernization and Expansion Plans

Britannia Industries is shifting its focus from older, less efficient factories in urban centers to modern, high-capacity facilities. While the company retains the lease for the Taratala land for another 24 years, its future use remains uncertain.

The Taratala factory has historically played a vital role in Britannia’s manufacturing, logistics, and sales operations in the eastern region. At the company’s 2018 Annual General Meeting (AGM) in Kolkata, chairman Nusli Wadia announced a significant investment of up to ₹350 crore for a new facility in Bengal, marking a strategic expansion in the state.

Britannia has been actively working on improving its manufacturing efficiency by upgrading infrastructure and adopting newer technologies. The company has focused on automation and digitalization in its supply chain, ensuring optimized production and reduced operational costs. The move to relocate operations to more advanced facilities aligns with its long-term strategy of sustainability and profitability.

Bengal: A Key Market for Britannia

Despite the closure, Britannia continues to maintain a strong presence in Bengal. The company operates a contract manufacturing facility near Dankuni, supporting its production needs. As one of the leading players in India’s food industry, Britannia considers Bengal a crucial market, contributing over ₹900 crore in annual revenue.

With Bengal being the company’s third-largest market, Britannia has been expanding its distribution network to ensure uninterrupted supply in the region. The company’s investments in Bengal indicate a commitment to strengthening its market presence while adapting to changing economic and operational dynamics.

Additionally, Britannia has been focusing on sustainability in its new production units by implementing energy-efficient practices and eco-friendly packaging solutions. The company aims to modernize its entire production ecosystem, ensuring higher efficiency while minimizing its environmental footprint.

The Taratala factory’s closure is a part of this larger restructuring effort, allowing Britannia to focus on innovation and future-ready infrastructure. As Britannia continues to expand, the company is expected to create new employment opportunities, contributing to the local economy despite the shutdown of older facilities.