Garment major Kitex inks pact with Telangana State

Deccan Chronicle.

Business, Companies

The integrated clusters will generate direct employment for 22,000 people and out of that 19,000 will be women

Sabu M Jacob, Chairman & MD, Kitex Group with minister KT Rama Rao (PTI)

HYDERABAD: Kerala-based garment major Kitex Group has signed a memorandum of understanding (MoU) with the Telangana state government for setting up two mega projects – one at Warangal mega textile park and another, an integrated manufacturing cluster, in Ranga Reddy district — with a total investment of Rs 2,400 crore.

The MoU was signed here on Saturday in the presence of industries minister K. T. Rama Rao and ministers Errabelli Dayakar Rao and Sabitha Indra Reddy. The Kitex Group is the second-largest producer of children’s apparel in the world. Works on both the clusters will commence within the next three months in Warangal (Kakatiya Mega Textile Park) and in Sitarampur in Ranga Reddy district.

The integrated clusters will generate direct employment for 22,000 people and out of that 19,000 will be women. It will generate indirect employment for nearly 18,000 people as well. The project focuses on rural employment for unskilled people, semi and non-literate people.

The state government will facilitate speedy land allotment, adequate infrastructure development, including provision of a common effluent treatment plant, and offering competitive incentives customised to the company's requirements.

The state government will also support setting up of an ESIC clinic at the project location and an ESI hospital within 10 km of the site at both the locations. Further, the state government will support Kitex in identifying the catchments for manpower for its units and facilitate skilling and placement of workforce, which will be mostly women. Adequate availability of local manpower at both locations will be ensured.

Kitex has appreciated the hassle-free transparent system for quick approvals and clearances as well as single integrated inspections with prior notice under the TS-iPASS framework.

Speaking about the business environment and proactive government support, Kitex MD Sabu Jacob said, “We intend to support the state in achieving its vision of developing a world class ecosystem in textile and apparel manufacturing in Telangana with a focus on creating a large number of jobs. In addition, we will also support the state in improving the quality of cotton cultivated here by promoting and encouraging use of better and mechanised technology from land development, cultivation, harvesting, ginning and storage of cotton thereby helping Telangana farmers realise fair prices of cotton.”

Rama Rao recalled that he had spoken to Kitex Group MD Jacob over phone after his announcement of exiting Kerala and invited him to Telangana to explore investment opportunities.

“The discussion which started over a phone call has now transformed into an investment of Rs 2,400 crore, creating 22,000 direct and 18,000 indirect employment opportunities in the region,” Rao added.

He stated that once the company started operations, there was a possibility of the company purchasing cotton grown in about three lakh acres in Telangana state.