Britannia Industries Limited, the FMCG major and the most common household name known in India for its iconic biscuits like Marie Gold and Good Day, is set to close one of its oldest production unit located in Kolkata's Taratala neighbourhood. The factory was established in the year 1947 and also holds a pivotal role in the company's early years of expansion in India.
The company in an exchange filing, earlier on June 20, 2024 announced, "this is to inform that a Voluntary Retirement Scheme offered by the Company to the workers at its factory situated at Taratala, Kolkata, West Bengal has been accepted by all the permanent workers of aforementioned factory of the Company."
"There is no material impact on the business operations of the Company," the company added in the regulatory filing.
Reasons Behind the Closure
According to various media reports, the decision to close the Taratala factory comes as Britannia Industries faces economic viability challenges.
About the Taratala Site
The Taratala factory is spread across 11 acres of leasehold land leased from the Kolkata Port Trust until 2048, leaves questions about its future use. Moreover , the company's plans for the site remain uncertain, but the company retains the lease for the next 24 years.
The company is known for its wide range of food products like Marie Gold and Good Day, as well as cakes, bread, dairy products, and other snacks | Representative Image
Impact on Employees
Around 150 employees will be affected by the closure of the Taratala factory, as per reports.
The company in response to this move have offered Voluntary Retirement Scheme (VRS) packages to all permanent workers, which according to the BSE filing filed by the company added that all the permanent workers have accepted the offer.
The company also reassured its stakeholders that the shutdown of the Taratala unit is not expected to significantly impact the company's overall revenue.
Britannia Industries Ltd shares
The shares of the company on Monday at 3:30 pm IST closed at Rs 5,311.95, down by 0.34 per cent.
