Kitex to explore new states for retail expansion

Eight months after the announcement of Kitex Garments’

decision to abandon its Rs 262 crores expansion plans in Kerala, the company has said that owing to the ‘unsafe business atmosphere in the state’ it does not have further plans to invest in the state. The company is planning to invest up to RS 500 crores, half of that amount in the first phase, for its expansion plans by 2015. It is looking at states like Gujarat and Tamil Nadu for expansion. Kitex is even mulling opportunities in China and Sri Lanka but not in Kerala.

In September last year, Kitex had given up its plans to invest Rs 262 crores in Kerala, owing to alleged political issues. The apparel park project would have provided employment to around 4,000 people. The company is not going to set up the plant anywhere in Kerala, as it feels that the business environment is right for the business. Issues like power disruption are posing as major hurdles.

Kitex Garments has a turnover of Rs 700 crores and employs around 8,000 people. The company is the third largest infant garment manufacturer in the world and has a production capacity of 6.5 lakh garments per day, with plans of scaling up to 11 lakh in two years.