“I am fed up with Kerala and its administration,” Kitex’s Sabu Jacob said in response to the company’s decision to pull out of the Rs 3500 crore project.

The Tamil Nadu government is attempting to entice one of the major apparel manufacturing companies based in Kerala, which is planning to relocate following a major squabble with its home state’s government. The Tamil Nadu government has greeted one of Kerala’s leading industrial enterprises, Kitex, with a red carpet welcome after it announced the cancellation of its 3,500 crore investment in the state. Kitex Chairman Sabu Jacob told a news channel that since his announcement on June 29 that the company intends to withdraw from certain projects in Kerala, he has received calls from six states.

Guidance Tamil Nadu, the state Industries Department’s nodal investment promotion agency, has sent a letter to Kitex on behalf of the state Industries Department. According to the letter’s Associate Vice President of Guidance, Gaurav Daga, Sabu Jacob had discussions with Tamil Nadu Industries Minister and the letter was written after that.

Sabu Jacob revealed that Tamil Nadu offered him a 40% subsidy, land at half the market value, a 100% relaxation on stamp duty, a 5% tax reduction for six years, a 25% subsidy for environmental protection infrastructure, a 50% subsidy for intellectual property, Rs 4,000 per month for six months of training, an electricity subsidy, and other benefits.

However, the group has yet to decide whether or not to relocate its operations to Tamil Nadu. According to media reports, Telangana has also approached Kitex.

Kitex Garments, the world’s second-largest manufacturer of children’s apparel, has announced the cancellation of a Rs 3,500 crore project for which it had signed a memorandum with the Kerala government at the “Ascend Global Investors Meet” in Kochi in January 2020. The plan was to establish industrial parks in Thiruvananthapuram, Kochi, and Palakkad, as well as an apparel park in Kochi.
Sabu Jacob stated, “Six Indian states have already invited us, and I have received calls from their Chief Ministers, Industries Ministers, and Principal Secretaries.” Even after we announced that we were pulling out of a Rs 3,500 crore investment, not a single clerk called me from Kerala.

“The offer made by the Tamil Nadu government is irresistible, and I learned that our neighbouring state provides many amenities. However, a decision to relocate from Kerala must be made after extensive consultations with our team and management… it will not happen overnight, but we are seriously considering it.”

“The Tamil Nadu government has also stated that they are willing to go above and beyond these offers.”

The well-known industrialist stated that the offer from Tamil Nadu is too good to refuse, and that it has boosted his morale, which had been low following the “victimisation” by the Kerala government.

He stated that Kerala was not even providing any subsidies, including for power, and that it was all for profit for the state government, but that even after this, it had no professional interest.

“The Kerala government’s attitude is critical… I’m not saying that the current government, or even the current opposition, had a similar attitude when they were in power. In terms of industries, we are at the mercy of local level political party leaders, and even an upper division clerk in the state can scuttle an industrialist’s prospects. Kerala is lagging behind in industrial development, and the attitude of the rulers and bureaucracy is to blame.”

Kitex is a corporate company that entered politics a few years ago, launching a political outfit called “Twenty 20,” which was previously registered as a non-profit organisation, and gaining control of the Kizhakkambalam panchayat.

Twenty-twenty candidates ran for six seats in the recent assembly elections, but none were elected.

Jacob stated: “I’m sick of Kerala and its administration… In the last month, 11 teams of officers from various departments have raided the company. Searches were conducted by the Departments of Labour, Factories, and Boilers. Pollution control board officers also arrived at our factory and searched every nook and cranny of the facility, grilling our employees for hours.”

“We have been here for the past 26 years and employ 11,000 people. The Kerala government is completely anti-industry, and we are treated as bourgeoisie, exploiters, encroachers… even criminals, and we are publicly humiliated.”

The Kerala Chamber of Commerce and Industry has already spoken out against Jacob’s treatment and has called for strict action against the victimisation of industries and industrial groups.

Kerala Industries Minister P. Rajeev responded to the controversy two days ago, stating that the government was in discussions with Kitex. However, he also stated that people should not defame the state without first having a discussion.