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Kitex Group MD says he was ‘kicked out’ of Kerala
Tamil Nadu and Karnataka also showed interest in the project after Jacob announced the company, one of the leading apparel exporters, was winding up the project citing an alleged witch-hunt
Kitex Group managing director Sabu Jacob on Friday said he is leaving Kerala with a heavy heart as he was not doing so on his own but was “kicked out” by the government while the textile major said it was shifting its ₹3,500 crore proposed project in the state to Telangana.
“Kerala says it is one of the best investor-friendly states, but the ground situation is contrary to it. Its policies are at least 50-year-old,” Jacob said as he left Kochi on board a private jet for Telangana.
Tamil Nadu and Karnataka also showed interest in the project after Jacob announced the company, one of the leading apparel exporters, was winding up the project citing an alleged witch-hunt.
Telangana industry minister K T Rama Rao held talks with Jacob and sent a private jet to Kochi for him on Thursday. “After airing my grievance, nobody from the Kerala government contacted me. Industry minister R Rajeev was busy blaming me. Kerala has to learn many lessons from its neighbours. Otherwise, it will become a graveyard of industries.”
Jacob said the move to shift was not against Kerala or its government but a desperate one to save his firm. “I know how to float around but I am really concerned about the future of upcoming entrepreneurs. The state has to change a lot,” he said.
Rajeev said the government was willing to talk to Jacob. “It is an unfortunate decision. It seems Jacob has made up his mind long before. He is leaving the state when many major companies have decided to set up their shops in Kerala,” Rajeev said. He said the government has nothing to do with frequent “inspections” at Jacob’s office. He added most of them were a result of complaints lodged with the National Human Rights Commission and different courts. Rajeev said it was wrong to blame the government alone as most of the complaints were filed by Congress leaders.
Jacob said chief minister Pinarayi Vijayan really wanted to change the atmosphere, but his efforts have not worked.
Vijayan sought to allay fears and said Kerala was the best in India in ease of doing business.
The company has said it will also shift some of the units to other states if the situation continued like this. Jacob said the plan was to open three apparel parks in Kochi, Thiruvananthapuram, and Palakkad as part of the industrial corridor that would have generated at least 35,000 people.
The group fell out with major political parties after it floated a party called Twenty20 in 2015. It now controls four local bodies in Ernakulam district and also fielded candidates in the last assembly elections.
Jacob last month said officials descend on the premises of the company and make inquiries as if they have committed a big fraud. He said he was fed up with continuous harassment. “The government treats us like bourgeoises, exploiter capitalists, and land encroachers. Enough is enough,” he said.
Headquartered in Kochi, the firm employs 15,000 people and exports apparel to many western countries.
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