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Kitex Garments’ Sabu Jacob: Moving To Telangana A Financial Decision Not Political Compulsion

For Kerala-based Kitex Garments chairman & managing director Sabu M Jacob, moving to Telangana was an easy decision. “If I invest Rs 1,000 crore in Telangana, over the next 10 years, the government there will pay me back almost a similar amount via capital subsidies, payback incentives etc. But if I invest Rs 1,000 crore in Kerala, I need to shell out another 100 crore to deal with ‘other expenses’ here,” Sabu said. Kitex is investing in an apparel park at the Kakatiya Mega Textile Park in Telangana’s Warangal district. He has also made it clear that the existing facility that gives employment to over 15,000 people will continue to operate in Kerala. Just that the expansion plans will be moved out of state for operational reasons. Sabu says this decision to relocate expansion plans to another state is purely a financial decision and nothing to do with politics. This comes after media speculation that the ruling Communist Party of Kerala thought it was high time to clip his wings after Sabu’s political entry via his CSR arm 20:20 started making an influence in the electorate. The 29-year-old company, part of the Anna-Kitex group, is the largest private sector employer in Kerala. Being an employment generator saw many States willing to roll out the red carpet to the company.