Kitex Garments to Start Babies Wear Unit in Karnataka
Kerala based Kitex Garments has got the approval to start garments unit from the Karnataka government and has earmarked around Rs 500 crore to set up the ready-made garments unit in Hassan Karnataka. However, the approval from the government has put Kitex into a dilemma as it also has the approval from another state Andhra Pradesh which has offered tax benefits, free land and cheaper power to the company. The company has already stated that it will come up with a manufacturing unit at Kochi this year and the decision on the second unit is likely to be taken in the coming months depending on the feasibility of the unit.
In Andhra Pradesh the cost of power which is offered is at Rs 1 per unit as compared to Rs 7 offered by Karnataka. The company plans to start commercial production by March 2019. Initially, the unit will have capacity of 1,500 to 2,000 people. In Phase 1, it will produce up to 2-lakh pieces of babies wear and after that, it will expand and intend to complete the expansion by 2021.
Kitex produces 6.5 lakh pieces of finished garments per day, targeted at infants to babies up to the age of 24 months it exports about 95% cent of infant wear to the United States and the rest to Europe. The company also engages in contract manufacturing for private labels such as Jockey, Carter, Babies R Us, Gerber and Mothercare. Kitex Garments, the world’s third largest supplier of infant wear has 9,000-strong workforce.