KOCHI: Kerala's state public sector undertakings (PSUs) have registered a marked turnaround in performance during the 2025-26 financial year, with higher turnover, improved profitability, and reduced losses, according to a review by the Board for Public Sector Transformation (BPT).
Of the 52 PSUs under the Industries Department, 28 reported operating profits during the year. The total turnover was Rs 5,275.34 crore, while operating profit was Rs 82.61 crore, reflecting the impact of structured reforms, including business plans and performance-based MoUs, implemented across all units.
The review shows that 35 companies recorded an increase in turnover, 14 improved their profit, and 12 reduced losses. Notably, seven loss-making enterprises returned to profitability, underlining a broader recovery trend across sectors including chemicals, engineering, textiles, electronics and coir.
Industries Minister P Rajeeve described the performance as a "transformational shift" driven by policy clarity and strategic planning. "Revolutionary changes have taken place in PSUs under the Industries Department. At a time when the Union government is weakening the public sector, Kerala has demonstrated that it can be protected and made profitable," he said.
Rajeeve added that nearly 30 PSUs were steered into operating profit, with several previously loss-making entities returning to the black due to targeted government interventions and competitive strategies.
Key administrative measures included restructuring the Public Sector Restructuring and Internal Audit Board into the BPT, strengthening governance, and appointing 28 professional directors across PSU boards. Time-bound statutory audits have been completed in 45 companies, improving transparency and accountability.
To boost market access, an online platform, 'K-Shoppe', was launched in collaboration with India Post and Keltron, enabling the wider distribution of PSU products. Efforts are also underway to integrate MSME products and expand retail presence through K-Stores.
The government also addressed legacy financial issues, including clearing Rs 293 crore in electricity dues and allocating funds to settle employee PF, ESI, and gratuity arrears. In the textile sector, raw material support and financing through the National Cooperative Development Corporation helped stabilise spinning mills, all of which are now operational.
Diversification and innovation have been key focus areas. Around 30 new products developed by PSUs such as Keltron, KSIE, and Kerala State Coir Corporation are market-ready. Keltron, in particular, has contributed to India's space and defence sectors and commissioned the country's first supercapacitor production facility.
Looking ahead, the state has set an ambitious target of Rs 9,000 crore turnover under Vision 2031, with projects such as a Rs 1,050 crore rubber-based industrial hub and new joint ventures expected to drive growth. "Strengthening the public sector is central to Kerala's alternative development model," Rajeeve said, expressing confidence that the momentum will continue.
