Why Andhra Pradesh's interest in Kitex has triggered a row in Kerala

Amid reports of Andhra Pradesh's attempt to woo the company, Minister P Rajeev said that Kitex should remember the company grew in Kerala.

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Kochi: Kitex MD Sabu Jacob questioned Industries Minister P Rajeev's comments on Kitex's purported move to Andhra Pradesh. In a press conference, Jacob declared that Kerala isn't anyone's ancestral property and Kitex doesn't need anyone's generosity to stay. Amid reports of Andhra Pradesh's attempt to woo the company, Minister P Rajeev said that Kitex should remember the company grew in Kerala. 

Rajeev also said that those who repeatedly threatened to leave Kerala are still in the state. “Kitex grew while being in Kerala. Isn't that an achievement in itself? Andhra Pradesh Chief Minister Chandrababu Naidu himself praised Kerala at the Davos event. Kerala is a state that has achieved 100% growth in foreign investment. Currently, Kerala's position is ahead of Andhra Pradesh,” Rajeev said. The minister also pointed out that HCL, one of the world's largest companies, is opening a large camp in Kerala.

Responding to this, Jacob said Kerala was not anyone's ancestral property and accused the minister of blaming others to cover up incompetence and failures. He criticized the minister's consistent negative portrayal of Andhra Pradesh. He said that the reasons behind Kitex's departure from Kerala are public knowledge alleging that the company has been subjected to relentless attacks by officials and the government since Pinarayi Vijayan's second term.

Andhra offers Kitex help

Kitex Group had signed a Rs 3,500 crore project with the Kerala government in 2021. The plan was to open an apparel park in Kochi and establish industry parks at Thiruvananthapuram, Kochi and Palakkad. However, citing ill-treatment by the Kerala government, Kitex decided to shift the project to another state. Recently, the Andhra Pradesh government deputed a minister to visit Kitex MD Sabu Jacob with a proposal to invest in the state. Kitex's share value had increased when the company announced its departure from Kerala. 

“The minister said they are looking for industries that pay salaries above Rs 50 lakhs in Kerala, and not Rs 10,000 like Kitex. We employ the underprivileged, who receive over Rs five lakh annually, free food and accommodation among other benefits. The minister said Kitex is staying here. Kitex doesn't need anyone's generosity to stay. If we shut down here and move to other states, we'll profit Rs 400 crore annually. We chose not to, considering our employees. Over ten thousand families would starve,” Jacob Sabu stated.