The Kitex Group, founded in the 1960s by the late MC Jacob, is the second largest producer of children’s clothing in the world. The company also manufactures aluminum products, vegetable spices and school bags.
Big decision of kitex company
It is a big challenge for a state to invite domestic and foreign companies to invest in it. But when the company that has accumulated over the years runs its business, then it is considered a big loss in a way. Something similar is happening in Kerala. Famous children’s clothing maker Kitex Garments is preparing to leave Kerala.
This is loss news for Kerala, while it is good news for Telangana. The reason is that the company has announced to leave Kerala and invest in Telangana. The company has said that it will invest Rs 1000 crore in Telangana. Let us tell you that Kitex is counted among the world’s largest companies manufacturing children’s clothes. Telangana Industries and Commerce Minister KT Rama Rao also gave information about this.
What is the reason for the dispute with the Kerala government?
According to the report of PBNS, Kitex Company has announced that it is withdrawing from its plan to invest in Kerala. The company said that the state officials are exploiting the company. The reason for the controversy is believed to be the multiple checks within a month by various government departments, including labor and health, at the Kitex manufacturing unit at Kijakkambalam near Kochi in Ernakulam district and the company premises.
Sabu M Jacob, chairman and managing director of Kitex Garments, alleged that the inspection was done to harass and suppress entrepreneurs like him. He alleged that the officers who came to inspect the company behaved as if they had come to catch thieves and robbers.
The government told the action to follow the instructions of the High Court
Kerala Industries Minister P Rajeev clarified that the company has not been investigated through any government order nor has any order been issued by the Industries Department. He said the investigation conducted by the health and labor departments was done in compliance with the orders of the Kerala High Court and the National Human Rights Commission. The court and the commission had ordered an inquiry on the basis of individual complaints. The complaints reportedly raised the issue of the company’s treatment of workers and increasing filth in the nearby river. The results of the investigation have not come yet.
Thousands of people get employment when investment increases!
Jacob surprised everyone by announcing the withdrawal of investments in Kerala worth Rs 3,500 crore that was announced at the ASCEND summit in January 2020. The investment was aimed at setting up a textile park and industrial park in Kochi, Thiruvananthapuram and Palakkad along the proposed economic corridor by 2025, which was expected to create thousands of jobs.
Without directly naming anyone in the state government, Jacob alleged that the state lacks a conducive environment for business development. He said that he did not want to give up the proposed investment in Kerala, but was being forced to do so due to political and bureaucratic oppression. He further said that while other states of the country are upgrading their eco-systems for big business, Kerala is still 50 years behind.
Kerala government said – ready to resolve the dispute
Kerala CM Pinarayi Vijayan defended the business environment of the state and said that the government is doing everything possible to make the entrepreneurs and investors feel comfortable in the state. He further said that Kerala ranks first in the Sustainable Development Index prepared by NITI Aayog. Along with this, he also counted the measures taken by his government in the last five years.
He said that the government has set up district-level dispute redressal forums, centralized system for inspection and a board for fast-track approval of projects. State Industries Minister P Rajeev said that he has not yet received any official information from the company. He further said that the government is ready to negotiate and resolve disputes in every way.
Announcement of investment of 1,000 crores in Telangana
Last week, Jacob, accompanied by some officials of Kitex, flew to Hyderabad in a private plane sent by the Telangana government, where he was met by a delegation led by state Industries Minister KT Rama Rao. After two days of discussions, the company announced an investment of Rs 1,000 crore in the Kakatiya Mega Textile Park in Warangal.
The Kitex Group, founded by the late MC Jacob in the 60s, is the second largest producer of children’s clothing in the world. Apart from clothing, the company also manufactures aluminum products, vegetable spices and school bags. It is the largest private sector employer in Kerala’s industrial scene, the group is believed to provide employment to around 10,000 people. But it is a matter of concern for Kerala as the company drags its feet.
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