Britannia Industries to Close Historic Taratala Factory in Kolkata! Britannia Industries, one of India’s biggest food firms, has announced the closing of its factory in Taratala, Kolkata. This factory, built in 1947, is the second oldest of Britannia’s operations in India, following the closure of the Mumbai site. According to a company notice to the stock exchanges, all workers at the Taratala factory were given and accepted Voluntary Retirement Scheme (VRS) packages.

Impact on the Company and Revenue

According to a company source, “the closure of this 150-worker unit is not expected to significantly impact the company or the state’s revenue.” This follows the shutdown of Britannia’s older factories in Mumbai and Chennai. Despite the factory’s historical importance, its output was no longer economically viable due to its age.

Lease and Land Details

The Taratala facility is located on 11 acres of leased land owned by Kolkata Port. The lease arrangement for this land was renewed in 2018 for a 30-year term that extends until 2048. According to a port trust source, Britannia still has a 24-year lease on the property, therefore the future use of this area is undetermined.

Strategic shift towards modern facilities

Britannia Industries is focusing on retiring older, less efficient factories near city centers and building cutting-edge facilities with higher production volumes. This strategic adjustment is intended to improve production efficiency and capacity. However, the firm has yet to reveal its plans for the Taratala site.

Historical and Operational Significance

Britannia’s operations in eastern India have relied heavily on the Taratala factory, which serves as a base for manufacturing, planning, logistics, and sales. At Britannia’s AGM in Kolkata in 2018, Nusli Wadia, the company’s chairman, revealed plans to invest Rs 300-350 crore in a new facility in Bengal. This would be Britannia’s first significant investment in the state in a long time.

Britannia’s Presence In Bengal

Aside from the Taratala factory, Britannia also has a contract manufacturing facility at Dankun. Bengal is Britannia’s third-largest market, generating more over Rs 900 crore in revenue yearly.

Conclusion

The shutdown of the Taratala mill signals the end of an era for Britannia Industries, reflecting the company’s overall objective of modernizing its manufacturing facilities. While the immediate impact on the company’s operations and state revenue is projected to be minor, the future use of the Taratala land remains a source of speculation. Britannia’s planned investment in a new plant in Bengal demonstrates the company’s ongoing commitment to the region, indicating that it will continue to grow and develop in one of its important regions.