The two units of KITEX Garments in Telangana will employ around 50,000 people when fully operational. The Kochi-based company has invested around ₹3,500 crore in two units — one near Hyderabad and another in Warangal. They are expected to be fully commissioned in three to four months.
“The commissioning of the two units will raise KITEX Garments’ total capacity to 3.5 million pieces per day, making it the world’s largest producer of children’s garments,” managing director Sabu M. Jacob said here on Wednesday (April 2, 2025).
The Telangana plants would produce 24 lakh units per day, while the KITEX Kizhakkambalam unit near Kochi would produce 11 lakh units a day. The unit near here had around 9,000 people working in production units, down from the earlier 11,000, Mr. Jacob added. He said the company had invested around ₹1,000 crore in the unit here over the last 30 years. KITEX had not made any fresh investments in Kerala over the last 10 years.
Mr. Jacob was responding to queries about a recent invitation by the company for applications to recruit around 25,000 people in various capacities for its plants in Telangana.
KITEX’s move to Telangana made news after Mr. Jacob alleged that the investment atmosphere in Kerala was unfriendly and that he planned to withdraw from further investments in the State.
He alleged that Kerala was not serious about helping industrialists and complained of repeated attempts to virtually terrorise the company management through raids and inspections, calling the incidents in 2021 acts of intimidation. He also alleged that there had been 12 inspections of the factories in a month in 2021, but none appeared to be related to rule violations. This, he claimed, was political vendetta.
It was under these circumstances that KITEX Garments had accepted an invitation from the Telangana government to set up two units. The company had a total of around 570 acres in Telangana, and the first production line was operational. The first export consignment was expected to be dispatched within a day or two, Mr. Jacob said.
Mr. Jacob added that the Telangana plants would procure cotton directly from farmers instead of cotton merchants or exchanges to improve traceability, which was a significant factor in global business. Raw cotton from farmers would be processed at the factory and turned into ready-to-wear children’s clothing. The Telangana factories would also be served by rail-guided vehicles moving on tracks totalling around 8 km at a height of six metres to transport goods within the factory space. This was the first such facility and elevated the mechanisation of the production process to another level.
Machinery and buildings for the Telangana factories were imported from Dubai and Europe. The Kitex Group would have a consolidated turnover of ₹7,000 crore when fully commissioned, Mr. Jacob added.
Industries Minister P. Rajeeve, who was in Madurai to attend the 24th congress of the CPI(M), did not comment on the matter.
A veteran investor in Kerala, who did not want to be named, said that despite KITEX’s claims, its business had flourished in the State. The company had solely depended on its Kerala unit over the past few years while the Telangana facility was being prepared.
Jayan Jose Thomas, Professor of Economics at IIT Delhi, who is familiar with Kerala’s industrial scenario, said the garments industry was not a viable future for the State as it was labour-intensive and required a larger area. He suggested that the State focus on more knowledge-intensive industries with new technology at their core, emphasising value addition and high-end products.
He added that KITEX’s decision to move to Telangana was a good one, as it brought the company closer to the source of labour. Even its Kerala unit were primarily manned by migrant workers, he said.
Published – April 03, 2025 01:10 am IST
