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In a shocking development, Britannia Industries Limited announced the closure of its historic factory in Kolkata’s Taratala neighbourhood. While the Bharatiya Janata Party accused the Trinamool Congress over the unit’s closure, the ruling party in West Bengal said it was due to the company’s internal management issues.

 

Established in 1947, the Britannia factory was not only one of the oldest in the company’s portfolio but also carried historical significance as one of its second-ever production units in India. The decision not only affects the city’s economic landscape but also leaves numerous workers facing uncertain futures.

 

This decision follows the closure of Britannia’s factories in Mumbai and Chennai. The Taratala factory, located on 11 acres belonging to Kolkata Port, had its lease agreement renewed in 2018 for 30 years, extending to 2048. Kolkata Port sources said the factory’s output was no longer economically viable

 

West Bengal BJP president and Union Minister Sukanta Majumdar criticised the state government, saying, “Industry will not come in the presence of a party which always extorts and also there is an anti-industry image of the chief minister.”

 

In a post on X, BJP IT cell chief Amit Malviya blamed both the current Trinamool Congress (TMC) and the previous Left regimes for the factory’s closure.

 

He wrote, “Today’s shutdown of Britannia Industries’ factory starkly epitomises the descent of Bengal — a region once renowned for its cultural richness and intellectual prowess — into profound disarray.”

 

In response, TMC leader Kunal Ghosh refuted the allegations, emphasising that the closure was due to internal management issues within Britannia.

 

“There are some issues of their management of the respective industrial organisation…. Several new biscuit factories have been set up in the state and many people have also got employment due to the biscuit production. If only one particular branch of an organisation faces trouble, then their management will definitely look into it,” Ghosh said.

 

Why is the factory shutting down?

 

The Taratala factory, a landmark in Kolkata’s industrial history, ceased production last May. Britannia’s recent announcement confirms the complete shutdown of the facility as part of the company’s strategic realignment to optimise production and enhance operational efficiency.

 

Britannia is shifting its focus to shutting down older, less efficient factories near city centers and establishing modern facilities with higher production capacities. The future use of the Taratala land remains uncertain, despite the company holding 24 more years on the lease.

 

The closure affects 122 permanent employees and approximately 250 contractual staff, many of whom have been with the factory for over a decade.

 

 

 

Britannia has issued closure notices to the affected employees, offering a lump-sum compensation package. Permanent employees with over ten years of service are promised Rs 22 lakhs, while those with seven years of service are set to receive Rs 18 lakhs.

 

The Taratala factory has been crucial for manufacturing, planning, logistics, and sales operations in the eastern region. In 2018, Britannia chairman Nusli Wadia announced at the company’s Annual General Meeting (AGM) in Kolkata that Britannia was planning to invest up to Rs 350 crore in a new facility in Bengal, marking a significant investment in the state after a hiatus, the report added.

 

In addition to the Taratala unit, Britannia operates a contract manufacturing unit near Dankuni. Britannia Industries is one of India's leading food companies, with Bengal representing its third-largest market, generating over Rs 900 crore in revenue.