The Rs. 550 crore Kerala (Kochi) based Kitex Garments, manufacturing and exporting garments, such as hosiery, shirts, pants, jackets, innerwear and outerwear has for the present disbanded its plans to go outside the country for expansion. This was confirmed by A.K. Mathew, GM Production, in an exclusive interaction with Apparel Online.
It was reported in the press earlier that the company had dealt a major blow to the investor-friendly image of the Kerala Government by announcing that it is abandoning its expansion plans within the State alleging ‘political harassment’. Sabu M Jacob, Managing Director had told media persons then that the Rs. 262 crore expansion plan of the company would now be implemented either in Colombo or China.
When AO contacted the company, Mathew informed that since the State Government acted ‘very strongly and swiftly’ after the news was published, the plans to go out of the country for expansion has been dropped and the company is in talks with the Government for the proposed Apparel Park which would provided employment to nearly 4000 workers and increase the turnover of the company to Rs. 1500 crore by 2015. Mathew pointed out that the final decision will be taken once the Government makes open its intention on the proposal.
The company, which had earned a profit of Rs. 27.11 crore as of year ending 31st March 2012 surpassing over its previous FY which was Rs. 20.63 crore, is among the most progressive companies and has maintained its growth projectile despite global recession.