Shares of Kitex Garments surged in the last few days, after the company announced that Telegana government has approved its expansion plan.
“The proposal submitted by Kitex Garments to Government of Telegana towards expansion plan has been approved,” the company said in exchange filing. The Government order will be issued within a few days, it added.
The company hopes to enjoy ease of doing business, better logistics and infrastructural facilities, incentive and subsidy schemes from the government, proximity to raw material sources, reduced cost of labour and easy availability of labour, and overall of cost reduction, in Telangana, thereby increasing profitability in the long run.
“Since company is in Infantwear business, we expect that business will grow at a good pace. We expect good number of orders from new and existing buyers in the backdrop of the US-China trade war,” the management said in the financial year 2020-21 annual report.