Britannia Industries to shut its 150-worker biscuit unit in Kolkata's Taratala, here's why

Britannia Industries, the maker of popular Indian biscuits like Treat and Good Day, is set to close its factory in Kolkata's Taratala neighborhood. Established in 1947, the factory is not only one of the oldest in the company's portfolio but also carries historical significance as one of its second-ever production units in India.

The closure, expected to take place soon, will affect around 150 employees. According to sources close to Britannia, the company has offered Voluntary Retirement Scheme (VRS) packages to all affected workers, which they have reportedly accepted.

The company cited "economic viability issues" as the reason for the closure. Sources close to Britannia told Times of India that the shutdown won't significantly impact overall revenue, and all workers at the Taratala factory were reportedly offered Voluntary Retirement Schemes (VRS) which they accepted.

This closure follows the recent shuttering of Britannia's older factories in Mumbai and Chennai, suggesting a strategic shift within the company.

The 11-acre factory land is currently on lease from the Kolkata Port Trust, with the lease agreement renewed in 2018 for another 30 years.

The Taratala factory has been a key center for manufacturing, planning, logistics, and sales in the eastern region. In 2018, Britannia chairman Nusli Wadia announced at the company's AGM in Kolkata that they planned to invest Rs 300-350 crore in a new facility in Bengal.

This would be the company's first significant investment in the state in a long time. Besides the Taratala factory, Britannia also operates a contract manufacturing unit near Dankuni. Britannia Industries, one of India's leading food companies, considers Bengal its third-largest market, generating over Rs 900 crore in revenue.