As soon as Kitex left Communist Kerala, its stock price skyrocketed

After being hounded out of Kerala by the Communist government, the Kitex group has announced an investment worth 1,000 crore rupees in Telangana. K. T. Rama Rao, son of Chief Minister KCR and Industries minister of the state, welcomed the decision of Sabu M Jacob and announced the investment from his personal Twitter handle.

“Delighted to announce the entry of KITEX group, world’s 2nd largest manufacturer of kids apparel into Telangana with an initial investment of ₹1,000 Cr. They’ve chosen KMTP, Warangal for their factories. My gratitude to Mr. Sabu M. Jacob, MD of KITEX group on a quick decision,” tweeted KTR.

Previously Jacob said that it has become extremely difficult to do business in Kerala and the company faces continuous harassment and humiliation from the Communist government and decided to withdraw the 3,500 crore rupees project.

After the Kitex group decided to scrap the investment in communist Kerala, its stock prices registered around 20 per cent gain within a day.

Investors know very well that moving out of Kerala means the group would be able to post better profits and operate peacefully because nowhere in the country industrialists face such humiliation for creating thousands of jobs and supporting the state’s economy.

“We have already acquired 30 acres of land for the apparel park at Kizhakkambalam in Kochi. The project report has also been completed and the project would have provided jobs for 20,000 people. The three industrial parks were envisaged to promote start-ups providing all infrastructural facilities. Each of these parks would have created 5,000 job opportunities. The decision to scrap the project has been taken as I am fed up with the continuous harassment at the hands of the authorities. Whoever invests in Kerala will lose peace of mind and will be driven to suicide,” said Sabu M Jacob, chairman and managing director of Kitex group.

After Jacob announced that he will no longer make an investment in Kerala, the neighbouring states like Telangana and Karnataka jumped over the opportunity.

Rajeev Chandrasekhar, BJP MP from Karnataka and Union Minister of State for Electronics and Information Technology welcomed Mr Jacob in the state and said that from CM to PM and HM, everyone is in his support. “Spoke to Mr Sabu Jacob of Kitex and offered him all support for his industry that provides employment to thousands of Malayalees in Kerala. Have also offered opportunity of investments in Karnataka with full support of CM @BSYBJP @narendramodi @AmitShah @JPNadda @blsanthosh,” tweeted Chandrasekhar.

Kitex Group is the world’s second-largest kids’ garments manufacturer and is expanding its business. With 1,000 crore rupees investment in Telangana, the company still has 2,500 crore rupees in its kitty for investment and the states across the country are looking to gain from Kerala’s loss.

Mr Jacob, who was forced to leave Kerala by the communist government, is being welcomed by the industry-friendly states. “I never thought in my life that I would leave Kerala. But for how long can one put up with this kind of treatment and humiliation. I tried, but could not any longer,” Mr Jacob had said when he decided to leave Kerala but given the welcome he receiving from other states, he would probably shift his altogether out of state.

Ruled by the Communists, it was only natural for Kerala to be averse to industrial growth, development, and wealth generation. For a type of politics that views poverty and oppression as key to power retention, the ruling Left-government of Kerala was never expected to go out of its way to promote investments into the state. And if the Communist government survives for another term, the state would have no industries left.