Kitex signs Rs 2,400 agreement with Telangana – The New Indian Express
KOCHI: Kitex, an exporter of children’s clothing based in Kochi, on Saturday signed an agreement with the Telangana government for a 2,400 crore rupee investment in the state. The agreement was signed to set up two garment units at Kakatiya Mega Textile Park in Warangal and at Sitarampur Industrial Park in Hyderabad.
Kitex chairman and chief executive Sabu M Jacob told TNIE that although he announced an investment of Rs 1,000 crore in July, the proactive attitude of the Telangana government and the atmosphere favorable to investors in the State gave him confidence to overtake him. The project will provide employment to 40,000 people, 85% of whom are women.
Up to 22,000 people will be employed directly and 18,000 indirectly. “We have a good presence in the children’s clothing market and the new units will focus on the same sector. We are considering the possibility of launching two more brands, ”said Sabu.
“As an investor, I felt very comfortable with the investor-friendly attitude of the Telangana government. The state is a major producer of cotton and the availability of the raw material is an additional factor, ”he added.
He said Kitex is not currently considering the possibility of moving the existing unit from Kizhakkambalam to Kochi. If the going gets tough, this option will be considered. However, the company decided not to make any new investments in Kerala.
Kitex will be the biggest employer in Kakatiya park
Kitex had abandoned its plan to invest Rs.3,500 crore in Kerala in July after various government departments carried out 11 surprise inspections of its premises in a month. The company had received invitations from nine states and countries such as Sri Lanka, the United Arab Emirates, Bahrain, Mauritius and Bangladesh after announcing the decision.
While the UAE and Oman have offered the option of starting a unit in the free zones with tax benefits, Bangladesh has offered some incentives. Sabu said Kitex will be the biggest employer in Kakatiya Mega Textile Park once the project is launched. Telangana Industries Secretary Jayesh Ranjan and Sabu signed the pact in the presence of Industries Minister KT Ramarao, Education Minister P Sabitha Indra Reddy and Panchayat Minister Raj Errabelli Dayakar Rao.
40,000 people to find a job
85% of women