Foundation stone laid for Kitex Garments in Warangal
Hyderabad: In a slew of events that will result in creation of employment opportunities for Warangal people, Industries and IT Minister KT Rama Rao on Saturday laid the foundation for the Rs 1,600 crore manufacturing facility of Kitex Garments at the Kakatiya Mega Textile Park in Warangal. He also inaugurated two units of Ganesh Group […]
Hyderabad: In a slew of events that will result in creation of employment opportunities for Warangal people, Industries and IT Minister KT Rama Rao on Saturday laid the foundation for the Rs 1,600 crore manufacturing facility of Kitex Garments at the Kakatiya Mega Textile Park in Warangal.
He also inaugurated two units of Ganesh Group that have seen an investment of Rs 550 crore. These three units will create employment to about 16,000 people.
The Kitex unit will create employment to about 15,000 people. The Group has earlier announced to invest about Rs 2,400 crore in Telangana State. The remaining investment will come in a second location at Sitarampur in Rangareddy district. In all, the infantwear maker promised to create 22,000 jobs.
Swift thinking State
Kerala-based Kitex coming to Telangana is an example of swift thinking and deft moves from Telangana Government. In June last year, Kitex Managing Director Sabu Jacob announced to withdraw new investments in the range of Rs 3,500 crore from Kerala following differences with the administration there. He was on the lookout for new locations for its manufacturing units.
Telangana reached out to him and requested him to consider Telangana. Jacob expressed his helplessness in traveling to Telangana in view of the travel restrictions due to the Covid.
Telangana did not waste any time and sent out a chartered flight for Jacob and his team to visit the Kakatiya Textile Park site. The quick move to send a chartered flight to a prospective investment was lauded by the industry as an astute move by Telangana. It spoke about the lengths that Telangana would go to get investments and create local employment. It also mirrored the industry-friendly approach as well as proactive measures of Telangana.
Jacob and team flew in the chartered flight and visited the site. “Telangana is the number one State in the country when it comes to providing a business-friendly atmosphere. There is something about Telangana that has been attracting investors in the past few years, and that made the State my first priority,” Jacob had said then.
The Kitex MD’s visit happened after a direct invitation from Rama Rao himself. Several rounds of talks were held with officials for over a week.
“We had an excellent interaction with IT and Industries Minister K T Rama Rao. My experience with him and other officials was totally different from the discussions I have had with several other State governments (on investment opportunities).. The Minister is very aggressive, in that he wants to bring in investments into the State and generate employment. He seems to take a personal interest in whatever he is doing,” Jacob said then.
Rama Rao had explained about the investor-friendly policies of the State, about the TS-iPASS single window approval system, availability of quality power, extensive cotton cultivation in the State among other aspects. The investments would get a mega project status and accordingly tailor-made incentives would be offered.
Kitex got invitations from nine States but it chose Telangana. “I zeroed in on Telangana State because of its progressive approach. I liked Rama Rao’s approach, his clarity, his confidence among other factors,” Jacob had said then. He further said he was aware of the rapid strides Telangana was making in the textiles sector including the Mega Textile Park in Warangal.
It is rare for a State government to act as swiftly and take decisions pertaining to investments as the Telangana government is doing, the company delegation said then.
Kitex, one of the largest infant-wear makers in the world with an export turnover of around Rs1,000 crore, had then announced that it was withdrawing from a proposal to invest Rs 3,500 crore to build an apparel park and three industrial parks in Kerala which could provide jobs to 35,000 people. Kitex Garments submitted that proposal at an investors’ conference in January 2020 organised by the Government of Kerala.
Kitex, within two months of announcing an investment of Rs 1,000 crore, decided to increase the investment to Rs 2,400 crore in Telangana. The Kitex delegation said it was impressed by Telangana investment-friendly policies and the conducive atmosphere for promotion of the textiles industry in the State.
Ganesh Group
Rama Rao along with ministers Satyavathi Rathod and Errabelli Dayakar Rao on Saturday also inaugurated two units of Ganesh Group- Ganesh Ecopet and Ganesh Ecotech- at the Kakatiya Mega Textile Park in Warangal.
Ganesh Ecopet is set up with an investment of Rs 300 crore (in phases) and will manufacture recycled filament yarn and recycled polyester chips. The unit will provide employment to over 500 people in the region.
Ganesh Ecotech has invested Rs 250 crore and will manufacture washed pet flakes and polypropylene fiber in the unit. It will provide employment to 500 people.
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