In a significant development, around 120 permanent workers at Britannia Industries’ Taratala factory in Calcutta have accepted the voluntary retirement scheme (VRS). The management’s discussions with contractual workers regarding VRS have cast a shadow over the factory’s future production. The factory, with a rich seven-decade history in Bengal, faces uncertainty.
The company’s stock exchange filing confirmed that all permanent workers at the Taratala factory accepted the VRS. However, the reasons behind offering VRS to employees remain undisclosed, as the company has not responded to queries.
Sources reveal that the company directly negotiated the VRS agreement with employees, bypassing the three unions at the factory. Depending on their remaining service period, permanent employees received severance packages ranging from ₹13 lakh to ₹22 lakh, along with gratuity and PF.
Management has indicated that the factory, known for producing popular biscuit brands like Good Day, Milk Bikis, and Cream Cracker, has become outdated. The current lease for the 11-acre plot runs until 2048, having been renewed in 2018. Despite not shutting down the factory, the management is exploring the possibility of returning part of the land to the erstwhile Calcutta Port Trust (SMPT), which owns the plot.
Britannia Industries, tracing its roots back to Calcutta, was established in 1892 by British businessmen with an initial investment of ₹295. In 1993, textile tycoon Nusli Wadia of Bombay Dyeing took control of the company from then-chairman Rajan Pillai, with assistance from French food giant Danone. In 2009, the Wadia Group acquired a 25% stake owned by Group Danone, becoming the largest shareholder.
Despite challenges, Britannia reported a consolidated revenue of ₹16,546 crore for the year ending March 2024, marking a 3.5% growth over the previous year. Operating profit stood at ₹2,869 crores, reflecting a 10.1% increase.
