The long-simmering rift between Kitex Group and the Kerala government flared up again on June 8, as managing director Sabu Jacob publicly alleged that sustained harassment by the ruling Left Democratic Front (LDF) drove him to shift a major investment to another state.
Addressing reporters, Sabu claimed that his ₹3,500-crore business was forced to look beyond Kerala due to what he described as repeated raids and a lack of government support. “In a single month, we faced multiple raids. There were no violations found, yet the pressure kept building. Neither the government nor the industries minister stood by us,” he said, adding that it was this climate that prompted him to move to Telangana.
The Kitex Group, one of the world’s largest manufacturers of children’s apparel, had earlier announced plans to invest heavily outside Kerala. Sabu, who also heads the Twenty-20 political outfit based in Kizhakkambalam, has often accused the state of being hostile to entrepreneurs and investors.
Industries Minister P Rajeeve responded with a counterpoint, stating that Kitex continues to function in Kerala and that the company’s roots and growth are deeply tied to the state. “Kitex began with six employees in Kerala and has grown into one of the largest companies while operating here,” he said.
Rajeeve also pointed out that despite Sabu’s announcements of starting operations elsewhere, nothing significant has materialised so far. “He said he’s moving to Andhra Pradesh, but there’s no sign of operations there. Has any plant begun outside Kerala?” the minister asked, suggesting that political motives might be behind the remarks.
“He’s the leader of a political party, and his statements must be viewed in that light,” Rajeeve added.
While the public back-and-forth has reignited the investor sentiment debate in Kerala, the facts remain blurred. Kitex has not officially shut shop in the state, and its operations in Kizhakkambalam appear to be running without visible disruption.
Sabu, however, remains vocal in his criticism, accusing Rajeeve of masking inefficiency. “Kerala is not the personal property of the minister. We need a government that stands with businesses, not against them,” he said during the media interaction.
Adding an interesting twist, Andhra Pradesh Textiles Minister S Savitha visited the Kitex headquarters near Kochi on June 7, reportedly inviting the company to consider investments in her state. Though the company had previously announced interest in Andhra, Telangana was the first state where a MoU was signed.