As Kitex Garments scraps its Rs. 3,500 crore project in Kerala, P. Rajeev, Kerala Industries Minister, has assured to look into the company’s grievances.
The issue has created much embarrassment for the State Government.
The Minister has also urged the investors to try redress their concerns by taking up the issue with the State Government instead of making statements that defame the state.
It is worth mentioning here that Sabu M. Jacob, CMD, Kitex Garments has said that frequent raids were being carried out by different Government agencies at its units at Kizhakkambalam in the suburbs of Kochi over the last few weeks.
He also alleged that it was political revenge as he was heading the Twenty20 forum that contested in the elections.
He added that owing to the anti-industry conditions, he was backtracking from the Rs. 3,500 project proposals, which included setting up apparel parks and industrial parks.
In another development, the company announced its financial results. Its revenue for the Q4, FY21 declined by 24 per cent to Rs. 112 crore, as against a net profit of Rs. 146 crore it reported in the corresponding period of the previous fiscal year.
The company reported 49.3 per cent decline in net profit of Rs. 9.73 crore in March 2021 quarter, as against a net profit of Rs. 19.22 crore in the same quarter previous year.
For FY21, its revenue was Rs. 455.39 crore, while for FY20 the same was Rs. 739.21 crore. The net profit for FY21 was Rs. 59.90 crore compared to Rs. 108.67 crore in FY20.