October 28, 2021


Shopping Works Wonders

Kitex chairman, Retail News, ET Retail

Sabu Jacob, chairman of Kitex group, on Saturday said while he has received unofficial communications from over 10 states and an official offer from Tamil Nadu, to take his investment there, the Kerala government has not made any efforts to approach him.

The Tamil Nadu government, meanwhile, confirmed that a proposal has been extended to the Kitex group.

Jacob told that principal secretaries and ministers from states across the country have been calling him up to discuss taking his Rs 3500 crore investment there from Kerala, but he has not yet taken a decision on it.

He said he has also received an official offer from neighbouring Tamil Nadu and that too was under consideration.

“Proposal has been extended to the Kitex group, which is keen on investing Rs 3,500 crore in the textile sector,” a senior industries department official in Tamil Nadu told .

Tamil Nadu, he said, has good potential for investments and it is a “very important, attractive investment destination.”

Apart from land at 50 percent of fair value, the incentives offered by the government include subsidised power for five years and 100 percent GST waiver for capital investment assets.

However, the Kerala government was yet to approach him after he had announced withdrawal from a Rs 3,500 crore investment project in the state, alleging harassment by government officials.

After Kitex announced its withdrawal from the project, Kerala Industries Minister P Rajeev on June 30 said that though the government has not received any official complaint from Kitex, a major apparel manufacturing company, the issue would be taken seriously.

He had also said that the industrial sector was on the path of revival and offered the government’s full support to genuine investors.

Kitex Garments Ltd had said it has decided to withdraw from the project signed during the “Ascend Global Investors Meet” organised by the state government in Kochi in January2020.

Jacob had earlier said it was difficult for him to run the existing industrial units in the State.

He had alleged that various units of Kitex were raided 10 times by officials from various departments during the past one month.

Jacob had alleged that officials comprising 40-50 in numbers, entered the factory units, carried out searches, prevented workers, including women employees, from doing their job, grilled them and harassed them.

He had also claimed that the officials did not reveal the reasons for conducting such searches and what violations were committed by the company.