Kitex garments Ltd has been in news due to its tug of war with the Kerala government over a Rs 3,500 crore investment promise that the company had cancelled recently. The company had accused the CPM-led Kerala government of sabotaging investment opportunities and witch-hunting the company for political reasons.
After Kitex Garments scrapped the Rs 3,500 crore project in Kerala, various state governments were in touch with the company. Later, the company officials flew to Hyderabad to meet the representatives of the Telangana government.
Following the news of Kitex Garments shifting its investment from Kerala, its share price rose by 13% within a span of just 2 days.
Kerala has always been notorious for not being business-friendly, with the left-wing labour unions causing unnecessary troubles for their own financial gains.