Britannia Industries Limited is closing its Taratala factory, established in 1947 and the company’s second oldest in India after Mumbai.
The decision, follows all Taratala employees accepting voluntary retirement packages. While impacting 150 workers, the closure is expected to have minimal financial repercussions for Britannia and the state.
This move follows recent shutdowns of Britannia’s Mumbai and Chennai factories. The Taratala facility, located on 11 acres leased from Kolkata port until 2048, became economically less viable due to its age. Britannia’s new strategy aims to phase out older, less efficient factories near urban centers and replace them with modern facilities capable of higher production.
The future use of the Taratala land remains uncertain with Britannia holding the lease for another 24 years. The factory was crucial for Britannia’s operations in eastern India, encompassing manufacturing, planning, logistics, and sales. In 2018, Britannia announced plans to invest Rs 300-350 crore in a new Bengal facility, marking a significant reinvestment in the state. Apart from Taratala, Britannia operates a contract manufacturing unit near Dankuni.
Bengal is Britannia’s third-largest market in India, contributing more than Rs 900 crore annually in revenue.
