Kitex Garments surges 10% as Telegana government approves expansion plan

The company expects business to grow at a good pace and there are possibilities of getting new orders from existing/ new buyers from across globe in the backdrop of the US-China trade war

Shares of Kitex Garments hit the 10% upper circuit at Rs 164.10 on the BSE this morning after the company announced that Telegana government has approved its expansion plan.

“The proposal submitted by Kitex Garments before 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 rationale behind expansion plan is ease of doing business, to utilize better logistics and infrastructural facilities; incentive & subsidy schemes from the Government, proximity to raw material sources; reduced cost of labour and its