Now, Kitex in talks to invest in Tamil Nadu, Karnataka and Andhra, says Sabu M Jacob

"It is a golden opportunity for Kitex and we are getting attractive offers from all states," said the group's chairman and managing director Sabu M Jacob
Sabu M Jacob
Sabu M Jacob

KOCHI: All other south Indian states are aggressively wooing investments by Kitex, said the group's chairman and managing director Sabu M Jacob. He said Kitex is in talks with the industries ministers of Tamil Nadu, Karnataka and Andhra Pradesh.

“It is a golden opportunity for Kitex and we are getting attractive offers from all states. On Monday, the Andhra Pradesh Industries Minister called me up and requested a meeting. The minister said he will arrange a meeting with the Chief Minister. He assured that all our requirements would be discussed and said Andhra wants Kitex in the state,” Sabu told The New Indian Express.

He said Telangana Industries Minister K T Rama Rao was more like a CEO than a minister. “The minister has a good understanding of the industry and has a solution for any issue we raise. He offered government help to install a waste treatment plant. The other offers included discounts in state GST and 10-year licence. While Tamil Nadu offered 5 percent interest on investment for 6 years, Telangana offered us 8 percent interest for 8 years,” said Sabu.

He said all states are offering Rs 700 to Rs 950 crore returns for an investment of Rs 1,000 crore in 8 to 10 years. Regarding allegations that Kitex does not have the resources to implement a Rs 3,500 crore project, Sabu said people are assessing Kitex considering the finances of Kitex Garments alone.

“We have nine companies and we have enough resources to make the investment. We are considering projects in Karnataka, Andhra and Tamil Nadu. We are considering shifting our aluminium and spices divisions to these states,” he said.

Regarding the marketing of kids' garments to be produced in the new units, Sabu said Kitex does not have competitors in the sector. “We are exporting 10 lakh pieces of kids garments from our Kerala facility. This is the maximum capacity of our facility. We have been dominating the particular segment and there are no competitors. So increasing the export volume will not be an issue,” he said.

Sabu said nobody from the Kerala government has called him to discuss the issue. "There were no inspections after we raised the issue. If there is more harassment, we will consider shifting the existing units to other states. Other states have offered to bear the cost of shifting if we are ready to migrate,” he said.

Meanwhile, Kitex's share price recorded a 14 percent rise on Monday.

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