21 Sep , 2021 By : Kanchan Joshi
Kitex Garments informed the exchanges on Monday that the company has signed the Memorandum of Understanding (MoU) with Telangana State Government for investing Rs2,406 crore in the state for two major industrial projects. Shares of Kitex Garments were trading over 2% higher at Rs173 per share on the BSE in Tuesday's early deals.
The company said that the proposed investment is planned at Kakatiya Mega Textile Park, Warangal and Industrial Park, Sitarampur, Rangareddy District. The Warangal project will start by October whereas the commercial productions will start by December and Kitex expects full capacity by December 2023.
Whereas, the Rangareddy project is expected to start by April 2022 and the commercial production of the same will commence by June 2023 with the full capacity being implemented by June 2024.
Explaining the rationale behind expanding capacity in the state, Kitex Garments said that Telangana is among the top three states for the ease of doing business. Also, it is among the largest cotton producer. The company will utilize attractive incentive scheme in Telangana Textile Apparel Policy (T-TAP), better logistics and infrastructural facilities, reduced cost of labour and its availability and overall cost reduction and thereby increase in profitability in the long run.
Alleging harassment by the Kerala government officials, Kitex group MD Sabu M Jacob had in June said his group was withdrawing its Rs3,500 crore project from the state. Jacob had on July 12 said the Telangana state government has offered a wide range of incentives and facilities for his venture. The Kerala government has said that it has an "open approach" towards issues raised by the Kitex group, as reported by news agency PTI.
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