The iconic Taratala unit of Britannia Industries located in Kolkata is set to be permanently shut down as all permanent workers have agreed to the company's Voluntary Retirement Scheme (VRS). This unit, established in 1947, is the second oldest of Britannia's production facilities in India. The reason behind the closure has not been officially disclosed but sources suggest that the company is planning to focus on more modern and efficient production facilities. The 11-acre leasehold land belonging to Kolkata Port on which the factory is situated was recently renewed for 30 years, but the 77-year-old factory's production capabilities were no longer financially feasible due to its age.
Apprehensions loom over the closure of Britannia Industries' factory in Kolkata as the company offers a voluntary retirement scheme (VRS) to all its permanent staff. The lucrative VRS offer includes a one-time separation compensation ranging from Rs 13 lakh to Rs 22 lakh, in addition to other benefits. The management has notified relevant stock exchanges about the VRS scheme, while the fate of 250 contractual staff and the factory's future remains unknown.
Amid negotiations for a voluntary retirement scheme (VRS), Britannia Industries Ltd's Taratala factory in Kolkata has been at the center of a production halt lasting over 20 days. While the spokesperson from the company asserts that business operations will not be affected, senior CITU leader Gautam Ray refutes these claims, reporting that all permanent employees have accepted VRS and negotiations are ongoing for contractual workers. This situation has sparked rumors of a potential shutdown of this unit, raising concerns for the workers and the company.
In a landmark decision, all permanent workers at Britannia Industries Limited's Taratala factory in Kolkata have chosen to take the company's voluntary retirement scheme (VRS). This historic move is expected to have no major impact on the business operations of the FMCG giant, even as the Taratala plant continues to operate on land leased more than 70 years ago. The decision was unanimously taken and is expected to set a precedent for other companies in the industry.