Kitex Garments has signed the Memorandum of Understanding (MoU) with Telangana State Government for investing Rs 2,406 crore in the state for two major industrial projects. Shares of Kitex Garments were trading over 2 per cent higher at Rs 173 per share on the BSE in Tuesday’s early deals.

The company said that the proposed investment is planned at Kakatiya Mega Textile Park, Warangal and Industrial Park, Sitarampur, Rangareddy District. The Warangal project will start by October, whereas the commercial productions will begin by December and Kitex expects total capacity by December 2023.

Whereas the Rangareddy project is expected to start by April 2022, the commercial production will commence by June 2023, with the total capacity being implemented by June 2024.

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Explaining the rationale behind expanding capacity in the state, Kitex Garments said that Telangana is among the top three states for the ease of doing business. Also, it is among the largest cotton producer. The company will utilise an attractive incentive scheme in Telangana Textile Apparel Policy (T-TAP), better logistics and infrastructural facilities, reduced cost of labour and its availability and overall cost reduction and thereby increase in profitability in the long run.

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