Britannia Industries Ltd. has closed its Taratala plant in Kolkata, the company's second-oldest production facility after Mumbai. All 150 permanent workers at the plant—which produces biscuits under brands such as Good Day, Milk Bikis, and Cream Cracker—have accepted a voluntary retirement scheme, according to the company's notification to the exchanges.
Britannia said that this closure will have "no material impact" on its business operations.
The company has deemed it financially impractical to maintain operations at the Taratala plant, established in 1947, due to outdated equipment. The company reached the voluntary retirement agreement with employees through direct negotiations, bypassing the factory's three unions, according to people with knowledge of the matter.
Britannia did not respond to further queries requested by NDTV Profit regarding the closure.
Employees were offered severance packages ranging from Rs 13 lakh to Rs 22 lakh, along with gratuity and provident fund benefits, depending on their remaining period of service.
The management is also negotiating a voluntary retirement scheme with over 250 contractual workers, according to people aware of the matter who spoke on condition of anonymity. Additionally, the company is considering returning part of the land to the Syama Prasad Mookerjee Port Trust, the owner of the plot.
Britannia planned to open a second unit in Bengal by 2018, but the plan did not materialise. Currently, the company operates three plants in the eastern region, located in Bihar, Odisha, and Assam.
For the fiscal year ended March, Britannia reported consolidated revenue of Rs 16,546 crore and a 4% increase in sales volume. The company aims for double-digit growth in the current fiscal.
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