Latest news with #Kitex
New Indian Express
15-06-2025
- Business
- New Indian Express
'Taiwan of India': Why high-skill jobs, not low-wage factories are defining Kerala's future
The headlines around Kitex Garments' plans to expand operations to Andhra Pradesh with a proposed Rs 4,000-crore investment have again stirred public debate. But the deeper story is not about one company's choice of destination — it's about Kerala's evolving industrial landscape and why labour-intensive industries like garments, cashew and coir are naturally moving out, while high-value sectors are moving in. Take it from Balagopal Chandrasekhar, Chairman of KSIDC and one of Kerala's pioneering entrepreneurs. Chandrasekhar, a former IAS officer, quit civil service in 1983 to launch Penpol, which would later become Terumo Penpol — India's largest manufacturer of blood bags. In a widely circulated LinkedIn post, he draws attention to a clear industrial shift: "Garment manufacturing, like cashew and coir, is a low value-added business. It is highly sensitive to wage rates and will naturally move to states with lower labour costs. Kerala, meanwhile, is transitioning to high-tech, high-value manufacturing." The Kitex Mirage: A Case in Context Around five years ago, Kitex's decision to pull back on an investment plan in Kerala and set up shop in Telangana sparked a fiery war of words with the state government. Yet, as Professor Jayan Jose Thomas of IIT Delhi observed in a seminal piece then, Kitex had already grown into the largest exporter of children's garments in India, employing nearly 10,000 people in Kizhakkambalam. Since the Telangana announcement, Kitex continues to operate unhindered in Kerala, clocking Rs 1,000 crore in business last year alone—hardly the profile of a company "hounded out". Now, Kitex is reportedly in talks with Andhra Pradesh, where a new textiles policy is being marketed aggressively. The appeal is obvious—low-cost labour, large land tracts, and minimal regulatory hurdles. This is no surprise. The same industrial migration happened with cashew processing, which shifted to Tamil Nadu, and marine exports, whose low-end units are now based in Andhra. But here's the critical point: Kerala is not being left behind—it is evolving. High Skill, High Pay, High Value Today, Kerala is seeing the rise of an entirely different kind of industrial economy. One that is built on skill, talent, clean infrastructure and sustainability. A far cry from the sweatshop economics that defines garment factories. Tech giants like IBM, EY, HCL Tech, and Fujifilm are setting up large campuses in Kochi and Thiruvananthapuram—not out of charity, but because they recognise Kerala's core advantages: a skilled, English-speaking workforce, superior education institutions, clean and green cities, and an abundance of water and power. Just last week, HCL Tech inaugurated its new delivery centre at Technopark Phase III, Thiruvananthapuram. In just three years, it has gone from one unit in Kochi to two full-fledged delivery centres across Kerala employing over 1,500 people in engineering and R&D services. In November 2024, IBM launched its biggest Gen-AI Innovation Centre in India at Infopark, Kochi. With 1,500 employees already onboard and expectations to reach 5,000, the centre is built around cutting-edge AI research and development on IBM's WatsonX platform. IBM now calls Kochi its fastest-growing campus in the world. EY Global Delivery Services, another heavyweight, employs 10,000+ people in Kerala, with plans to double this number and house 20% of its India workforce in the state. That's not a statistic you associate with a state hostile to business. From Back Office to Brain Trust Kerala's industrial arc resembles the BPO boom of the late 1990s, when US firms chased labour arbitrage in India. Cities like Bengaluru and Hyderabad flourished. Kerala, despite starting early with Technopark in 1990, missed that first wave. But this new tech-led, AI-powered wave is different, and Kerala is riding it smartly. Minister P Rajeeve, the driving force behind Kerala's proactive industrial policy, frames it clearly: "Work from Kerala is the new policy. Our cities are clean, connected, and the talent is world-class." Under his watch, Kerala topped India's Ease of Doing Business Reforms index and attracted investments from Allianz, Strada, Zoho, and even an Italian tech firm named Dynimated, which opened a futuristic "phygital" studio on Kochi's outskirts. Rural Revival, the Zoho Way A prime example of Kerala's inclusive, innovation-driven future is Zoho Corporation's rural model. The company has set up a tech hub in Kottarakara, offering AI and robotics training, turning sleepy towns into talent accelerators. As Sridhar Vembu, Zoho CEO, famously remarked: "Kerala has the potential to become the Taiwan of India." The environment—clean air, clean water, livable cities—is becoming a crucial competitive advantage in the AI age. Capital is now seeking intelligence over infrastructure, innovation over cheap labour. Garments Go, Innovation Grows The emotional reaction to Kitex's expansion outside Kerala misses this structural shift. The state has no reason to cling to industries that no longer match its economic DNA. Low-wage, low-skill garment manufacturing will go where it's viable — just like coir, cashew, and seafood did. And that's OK. In their place, Kerala is attracting high-end players, creating jobs that pay more, demand more, and do more for its people and economy. As Balagopal Chandrasekhar summed up: "Let low-end industry go. What's coming in its place is better." Kerala is not being bypassed—it's being upgraded. The migration of garments is not an indictment, but an indication that the state is moving up the value chain. And that is exactly where the future lies.
United News of India
11-06-2025
- Business
- United News of India
Kitex skips Kerala, plans to invest Rs 4000 crore in Andhra
Kochi, June 11 (UNI) After a war of words erupted between CPI(M)-led Left Government and Kitex Managing Director Sabu Jacob over existing industry climate in the State, the company expresses interest to invest Rs 4000 crore in Andhra Pradesh. Kitex, one of world's largest infant clothing manufacturers, which has already invested 3,600 crore in Telangana, shows interest in Andhra Pradesh seeing the availability of large quantities of cotton. Other infrastructure facilities including road, air and rail connectivity are also an attraction for setting up an export-oriented garment production unit in Andhra Pradesh, company sources said. A few days ago, in a scathing attack against CPI(M)-led LDG Government for its alleged unfriendly attitude towards industries in Kerala, Kitex MD Sabu Jacob said he was forced to skip Kerala due to harassment from the Left Government. "My Rs 3500 crore business was shifted from Kerala to another south Indian state. My company was raided multiple times in a month proving CPM attitude towards investors and showing lack of Government support in Kerala. But, they could not find any violation of law," the Kitex MD told newspersons. He was responding to Industry Minister P Rajeeve's comment that "Kitex owner is still in Kerala where he established and flourished his business. Though, the Kitex MD has announced launching of his companies in Andhra, but it did not materialize," he added. Sabu Jacob alleged that the Industry Minister was trying to hide the ground reality in Kerala. Sabu Jacob founded Twenty-20 in 2013 to implement Corporate Social Responsibility initiatives of the company in Kizhakkambalam, the eastern suburb of Kochi. The long-term objective of Twenty-20 is to make Kizhakkambalam a model of sustainable development, replicable anywhere in India. In November 2015 Twenty-20 managed to win local body elections with 69 percent vote share. Development initiatives were carried out by Twenty-20 through housing projects, drinking water projects, health, agriculture, education, employment opportunities, green initiative, anti-corruption, infrastructure, schools, supplementary diet, anti alcohol movement, environmental protection activities and women empowerment. UNI DS GNK
The Print
11-06-2025
- Business
- The Print
How politics spilled over into business as Kitex vs LDF govt in Kerala enters 2nd round
Cut to now, Kerala is at the top of the Ease of Doing Business rankings, and hosted a major investors' summit earlier this year. Against this backdrop, a high-profile visit by Andhra Pradesh Minister for Handlooms and Textiles S. Savitha to Kitex's Kochi headquarters has reignited the long-running debate over the firm's expansion outside Kerala. Jacob said at the time that Kitex had been 'forced to move out of the state'. Thiruvananthapuram: In 2021, as Kerala government was championing its ambition to turn the southern state into a top investment hub, one of the state's largest employers accused the ruling Left Democratic Front (LDF) of driving businesses away. Kitex Garments' managing director Sabu M. Jacob alleged the state was 'hounding' enterprises through relentless factory inspections. Kerala would soon become a 'graveyard of industries,' he declared and announced plans to shift Rs 3,500 crore worth of investments to Telangana. Talking to ThePrint, Sabu said talks with the Andhra Pradesh government are in the initial phase, and that he would take a call on any fresh investment in the state after meeting CM Chandrababu Naidu. His remarks came a day after Kerala Industries Minister P. Rajeev said Sabu's remarks should be seen in a political light, since he is a businessman-turned-politician. Those talking about ease of doing business in Kerala will have to answer to the state's youth at a time when many firms are coming to invest in Kerala, the minister told the media Sunday. Sabu is also the chief of the corporate-backed Twenty 20 party, which is in power in four local bodies in the state's Ernakulam district. While he denied any personal friction with the Kerala government, Sabu did express frustration at what he saw as political posturing by the state leadership. 'By birth, they have only seen to ruin others' hard work. Can a businessman not be a politician? I haven't talked about politics or my party regarding this. The party will go in that line.' His renewed criticism of the state also comes amid the ruling LDF's aggressive promotion of Kerala as an investment destination ahead of Assembly polls next year. The state organised a two-day Invest Kerala Global Summit in Kochi this February, which drew Expressions of Interest (EoIs) worth Rs 1.52 lakh crore from 374 companies. The government also conducted over 40 sector-specific conclaves in the run-up to the summit. Kerala-based political analyst Joseph C. Mathew told ThePrint, 'If Sabu hadn't started the political party, he would not have been in this situation. However, now both the parties also act like they don't need each other.' Also Read: Tharoor-Congress feud sparks buzz in his Thiruvananthapuram constituency, unease in party unit Kitex's plans & Twenty 20 party Founded by M.C. Jacob in 1968 in Ernakulam district's Kizhakkambalam, Anna-Kitex Group, popularly known as Kitex, primarily manufactures garments and aluminium products. According to one report by Economic Times Markets, Kitex saw a steady increase in its revenue in the last three years, with total revenue in FY 2025 being Rs 1,001.35 crore, up from Rs 631.17 crore the previous financial year. In FY 2025, the company with a market cap of Rs 5,608.94 crore booked a profit after tax of Rs 138.73 crore—marking a growth of 146.28 percent compared to the previous fiscal year. Kitex is also one of the largest private-sector employers in Kerala, led by a Malayalee, alongside the Muthoot Group (more than 40,000 employees) and Malabar Group (25,000 employees). Other large employers include US-based tech giant UST Global, which has its India headquarters in Thiruvananthapuram, the company's largest development centre, and together with its Kochi campus, employs over 10,000 people in Kerala. While Kitex is indeed expanding in Telangana, its headquarters remains in Kochi, and it continues operations in Kerala. Sabu said the firm plans to set up two units in Telangana, one in Warangal and the other in Hyderabad. The Warangal unit began operations in April, and the Hyderabad unit is expected to open in December 2026. 'By September–December, we expect to have about 12,000–14,000 employees in Warangal. In total, these two units will employ around 50,000 people,' he said. In Kerala, Sabu claimed the firm employs about 16,000 workers, of which the majority consists of interstate migrants. An official from Kerala's Directorate Of Industries & Commerce told ThePrint on condition of anonymity that despite making allegations, the firm still continues to operate in the state. 'They have been saying that they would leave. But they are still here, aren't they?' Founded in 1992, Kitex Group launched its CSR wing Twenty 20 in 2013 with the aim of transforming Kizhakkambalam—a village on the outskirts of Kochi where the company is headquartered—into a model village. It later transformed itself into a political party and contested the 2015 Kerala local body polls, winning control of Kizhakkambalam panchayat. It then expanded to four local bodies in Ernakulam district in the 2020 local body polls. Though the party doesn't propagate a particular political ideology, it engages with the public through welfare initiatives such as subsidised supermarkets, improved water and electricity supply, among others. In the 2021 Kerala Assembly elections, Twenty 20 contested eight constituencies in Ernakulam district, though unsuccessfully. Its candidate in Kunnathunad garnered a little more than 42,000 votes, finishing third behind the CPI(M)'s winning candidate P.V. Sreenijin and Congress's V.P. Sajendran. What Kerala minister said During his interaction with the media Sunday, minister Rajeev had said many entrepreneurs, including Bharat Biotech's Krishna Ella, have openly praised Kerala as an investor-friendly state. He added that the government is making dedicated efforts to create opportunities that will encourage the youth to remain and thrive in Kerala. 'You should consider that the businessman is also the president of a political party. If you want to understand the opinion of businessmen, you should speak to businessmen. Since he is also a politician, he naturally has political interests too,' he said, referring to Sabu. He also highlighted that Kerala's Foreign Direct Investment (FDI) inflows more than doubled over the past year, an achievement he argued would not be possible if the state were not seen as investor-friendly. According to data from DPIIT, Kerala's FDI surged to Rs 3,300 crore in the previous fiscal year, up from Rs 1,633.42 crore the year before. The state ranked ninth in FDI inflows nationally, with Maharashtra retaining the top spot with Rs 12,000 crore. (Edited by Amrtansh Arora) Also Read: Nilambur bypoll: How Anvar, once Kerala's richest MLA, is adding twist to crucial LDF-UDF contest
New Indian Express
10-06-2025
- Business
- New Indian Express
Not moving out of Telangana: Government, Kitex CMD
HYDERABAD: Amid the ongoing row between the Kerala government and Kitex Garments Ltd, speculation has arisen over the company's potential investment shift to Andhra Pradesh. However, both the Telangana government and Kitex have confirmed to TNIE that there is no question of diverting investments away from the state. In 2021, following allegations of harassment in Kerala, the then BRS government invited Kitex to Telangana. The company committed to invest Rs 3,500 crore to set up two manufacturing units, one in Warangal and the other in Seetharampur near Hyderabad. Once fully functional, the two units are expected to generate employment for nearly 50,000 persons. The combined production capacity is estimated at 3.5 million garments per day.
Hans India
08-06-2025
- Business
- Hans India
Textile giant Kitex Garments shows interest in investing in AP
Amaravati: Kitex Garments, a global leader in the textile sector, has expressed keen interest in investing in Andhra Pradesh, announced Minister for Handlooms and Textiles S Savitha. She revealed that the company's management is scheduled to meet with Chief Minister Chandrababu Naidu soon. Minister Savitha visited the Kitex Garments headquarters in Kochi, Kerala, on Saturday. She inspected the apparel manufacturing process and interacted with employees. Later, at a press conference held jointly with Kitex Garments Chairman Sabu Jacob, Minister Savitha highlighted that Andhra Pradesh has become a haven for investments since Chief Minister Chandrababu Naidu assumed office. Minister Savitha indicated that Satya Sai district is being considered as a priority location for the Kitex Garments unit. She highlighted the district's proximity to Bengaluru airport, Krishnapatnam Port and railway connectivity, which would greatly facilitate product exports. She also pointed out that Kurnool district, known for its high cotton production, could serve as a readily available source for Kitex Garments' raw material needs. Minister Savitha expressed satisfaction with Kitex Garments' operations, commending their business management based on ethical values rather than solely profit. She lauded Kitex management for treating its 15,000 employees like family members. She noted that Kitex is the largest employer in Kerala's textile sector and has earned a global reputation as one of the largest apparel manufacturing companies in the world. Recently, Kitex invested Rs 3,600 crore in Telangana, Minister Savitha revealed. Expressing delight over Kitex's interest in investing in Andhra Pradesh, Minister Savitha extended her gratitude. She assured that a meeting with Chief Minister Chandrababu Naidu would be arranged soon, where Kitex management is expected to present their investment plans. Earlier, Minister Savitha toured all departments at the Kitex Garments headquarters. She was accompanied by the company's MD Sabu Jacob and other staff members.
