Britannia Industries has successfully implemented a voluntary retirement scheme (VRS) at its Taratala factory in Kolkata, West Bengal, with approximately 150 permanent workers opting for the scheme. This has created some fears about the upcoming production of the factory that has for over seven decades been in existence.
This was revealed by Britannia in a filing to the stock exchange, who confirmed all the permanent workers at the Taratala factory have accepted the VRS. The company was keen to reassure its stakeholders that this sort of development would not severely affect its operations.
Some of the sources disclosed that the government through the management of VRS did not engage the three trade unions representing employees of the factory; rather, it directly negotiated with the employees themselves.
While as permanent employees, they were given retrenchment compensation starting from ₹13 lakh to ₹22 lakh related to gratuity and provident fund benefits based on the years of service rendered by the employees.
Top officials told workers that due to dilapidated plant and equipment the sweet factory, which bakes Good Day and Milk Bikis, is no longer financially feasible. The plot of land at the company is currently leased at 11 acres and has a renewal to 2048 after it was renewed in 2018.
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At present, continuous manufacturing takes place and among managers, there are considerations concerning the possibility to revert a portion of the land to SMPT (formerly Calcutta Port Trust), the landowner.
This consideration comes in the backdrop of earlier rent related litigation between Britannia Industries and the Calcutta Port Authority where eviction was first mentioned back in 2009.Although the company earlier in 2016 planned to set up a second unit in Bengal which was not indeed executed, Britannia has already invested into Bihar, Odisha as well as Assam’s units.
This Calcutta based company which is now under the umbrella of the Wadia Group, which embarked its journey in the year 1892, has recorded a consolidated operating income of ₹ 16,546 crore for the trailing twelve month period of March, 2024 which is up by 3. With the topline growing at 5% year-on-year and operating profit of ₹2,869 crore, an augmentation of 10%.
Speaking of the implementation of VRS at the Taratala factory it is critical to notice that this step is a part of Britannia Industries operational strategy to make the company more economic and flexible to the new challenges of the global economy without forgetting about the company historical background in Calcutta.
