HomeBusinessKitex Garments Surges After Telangana Government Approves Expansion Plan

Kitex Garments Surges After Telangana Government Approves Expansion Plan

Kitex Garments Surges After Telangana Government Approves Expansion Plan

Kitex Garments Surges After Telangana Government Approves Expansion Plan

Shares of the world’s second largest producer of youngsters’s apparels, Kitex Garments, rose as a lot as 10 per cent to hit an intraday excessive of Rs 164.10 a day after the corporate knowledgeable exchanges that the federal government of Telangana accepted its growth plan. The firm in July knowledgeable exchanges that it was invited by the Telangana Government for discussions on potential funding alternatives within the state.

Kitex Garments plans to take a position Rs 1,000 crore in Telangana and expects its capability to double within the subsequent two years.

Kitex Garments cited ease of doing enterprise, utilisation of higher logistics and infrastructural amenities, incentive and subsidy schemes from the federal government, proximity to uncooked materials sources and decreased price of labour as a number of the causes behind its funding plan.

“The State of Telangana ranks among highest in ease of doing business and is an ideal destination for apparel manufacturing as it is the 3 largest producer of cotton in India, has sufficient infrastructure facilities, investor friendly state policy, thereby very conductive for industrial growth. With liberal government policy, availability of raw material and various incentives offered by the state, the company expects to reduce its operating cost, shorten payback period and drive profits. The Company also expects to fast track its investment with active state government support,” Kitex Garments had stated in a press launch in July.

As of 11:58 am, Kitex Garments shares have been locked in a ten per cent higher circuit with pending purchase orders for 1,14,704 shares on the BSE.

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