KOCHI: Kochi-based kids apparel exporters Kitex signed an agreement with Telangana government on Saturday for investment to the tune of Rs 2,400 crore in the state. The agreement was signed to set up two garment units at Kakatiya Mega Textile Park in Warangal and Sitarampur Industrial Park in Hyderabad.
Kitex chairman and managing director Sabu M Jacob told TNIE that though he had announced an investment of Rs 1,000 crore in July, the proactive attitude of Telangana government and the investor friendly atmosphere in the state gave him confidence to double it. The project will provide employment to 40,000 people of which 85% will be women.
As many as 22,000 people will be employed directly and 18,000 indirectly. “We have a good presence in the market for kids garments and the new units will be concentrating on the same sector. We are considering the possibility of launching two other 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 raw material is an added factor,” he added.
He said Kitex is not considering the possibility of shifting the existing unit at Kizhakkambalam in Kochi for the time being. If the going gets tough, that option will be considered. However, the company has decided not to make new investments in Kerala.
Kitex to be biggest employer at Kakatiya Park
Kitex had scrapped its Rs 3,500-crore investment project for Kerala in July after various government departments conducted 11 surprise inspections on its premises within a month. The company had received invitations from nine states and countries such as Sri Lanka, the UAE, Bahrain, Mauritius and Bangladesh after it announced the decision.
While the UAE and Oman offered the opportunity to start a unit in the free zones with tax benefits, Bangladesh has offered some incentives. Sabu said Kitex will be the biggest employer at 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 K T Ramarao, Education Minister P Sabitha Indra Reddy and Panchayat Raj Minister Errabelli Dayakar Rao.
40,000people to be given employment
85% of them women