Kerala-based Kitex Garments, one of the leading global manufacturers of kids apparel, has entered Telangana with an initial investment of Rs 1,000 crore, state Industries and Commerce Minister KT Rama Rao announced on July 9. The announcement comes days after the company decided to withdraw its investment plan in Kerala citing the "harassment" by state officials.
Kitex, as part of the deal with the Telangana government, would be setting up its factories at the Kakatiya Mega Textile Park in Warangal district.
"Delighted to announce the entry of KITEX group, world’s 2nd largest manufacturer of kids apparel into Telangana with an initial investment of Rs 1,000 crore. They’ve chosen KMTP, Warangal for their factories. My gratitude to Mr. Sabu M. Jacob, MD of KITEX group on a quick decision," Rao tweeted.
Kitex MD Sabu M. Jacob also issued a statement to confirm the company's agreement to invest Rs 1,000 crore for the textile project in Warangal.
"In principle, the Kitex Group has agreed upon a Phase- I investment of 1,000 crores within a span of two years in the textile industry for the project ‘Textile Apparel’ in the Kakatiya Mega Textile Park in Warangal," Jacob said.
"This investment will generate an employment of 4,000 jobs in the state of Telangana," he added.
Also Read | Kitex controversy is a sign Kerala is yet to shake off its anti-industry image
Kitex's entry into Telangana is an apparent loss for Kerala. The company was earlier set to invest Rs 3,500 crore in the coastal state, but was forced to reconsider its decision after being allegedly subjected to frequent inspections and raids by the officials from the state departments.
The alleged raids disrupted the company's functioning and Jacob went on record to state that he is considering diverting the investments to another state.
"I have said I am not going to implement it in Kerala but I am open to taking it to other states," he had told Moneycontrol.
"There have been 11 raids on the factory in the space of a month (in Kerala). It is sheer harassment. Officials from various departments such as labour, health, factory and boilers, pollution control, besides the police and the collector have conducted inspections. They come in hordes and question the workers including women and ask for their names and addresses. They didn’t find any discrepancy," Jacob said, marking his disappointment towards the government of Kerala.
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