The Kitex group of companies has said that it was withdrawing from making fresh investments to the tune of ₹3,500 crore in the State following what the group chairman Sabu Jacob described as “the humiliating experience” of being subjected to repeated and frequent checks on the firm’s compliance with the laws and regulations. Mr. Jacob said on Tuesday that the 11th "inspection" in a month was conducted on the day.
The group had been operating in the State for over several decades, employing around 10,000 people. It had been bound by the regulations and had been issued licences to operate. But there is a sense of being "hounded" by the authorities, he said, adding that things had gotten out of hand.
There had already been 10 inspections at the factory site during the triple lockdown, during which 40 to 50 officials entered the premises. They did not convey what they were looking for or if any violations were detected, said Mr. Jacob. He said he was not against any inspection by the authorities but called for the same norms for all.
The Kitex Group, with annual exports worth ₹1,000 crore, said it would withdraw from investments in an apparel park as well as private industrial parks in Thiruvananthapuram, Kochi and Palakkad. The investments were agreed upon during the global investment meet in 2020, said a communication from the company.
Employment generation
These investments would have generated employment for around 35,000 people, including around 20,000 in the apparel park. The investments were planned to be completed by 2025, it said.
Mr. Jacob is the founder of Kizhakkambalam Twenty20, an apolitical formation under the aegis of the Anna Kitex Group, which won a majority in Kizhakkambalam and neighbouring Aikkaranadu panchayats. The entity wields considerable influence in Kunnathunadu and Mazhuvannoor as well.
