Industrial Testimony of a Changing Kerala
P. Rajeeve Minister for Law, Industries and Coir
For the first time in history, a project conceived and implemented by Kerala in connection with industry has received national recognition. The ‘Year of Enterprises’ project was selected as the best practice in the MSME sector at a meeting attended by Prime Minister Narendra Modi. Through this project, 3,40,605 enterprises were established, attracting an investment of Rs. 21,859.13 crore and creating 7,22,444 jobs in Kerala. Notably, 1,08,480 women entrepreneurs emerged as a result of this initiative. New land allotment rules have been introduced to foster an industry-friendly environment in the state. Procedures for land transfer, structural modifications, changes in activity and land deeds in industrial estates under the Directorate of Industries and Commerce have been simplified.
Taking a Giant Leap
Kerala has made remarkable progress in the Ease of Doing Business ranking, moving from 28th to 15th, and now to the first position. The Invest Kerala Global Summit, which positioned Kerala as a global brand, saw participation from 5,000 delegates and garnered investment commitments worth Rs. 1.75 lakh crore. World-class companies took part in the summit. Kerala also participated in the World Economic Forum Annual Summit at Switzerland. India’s first International Gen AI Conclave and Kerala’s first International Robotics Round Table Conference were also organised. The Industrial Policy 2023 was introduced and approval was secured for the Kochi-Bangalore Industrial Corridor. A task force is being formed to expedite construction. This corridor is expected to attract investments of over Rs. 10,000 crore and create more than one lakh jobs. Industry awards have also been instituted to recognise and encourage entrepreneurial contributions.
Public Sector Enterprises in Profit
T he Kerala State Public Enterprises Selection and Recruitment Board (KSPSRB) was formed to streamline the employment process in PSUs. Several public sector enterprises turned profitable during this period. Kerala Paper Products Limited (KPPL), taken over from the central government, has become a symbol of pride for Kerala. A new company, Kerala Rubber Limited, was launched with an investment of Rs. 1,050 crore to make Kerala a hub for rubber-based industries. Kerala Coir Corporation signed an agreement with Walmart for the marketing of coir products—marking the first such agreement between Walmart and a public sector enterprise in India. Exports to Central Asian countries have commenced for the first time. Coirfed dispatched yarn to the Golden Temple in Amritsar. • KCCP Limited, which had been running at a loss since 2015–16, has been consistently profitable since diversification plans were implemented. • SIDCO achieved a turnover and operating profit of Rs. 200 crore for two consecutive years, a milestone after 15 years. • KMML recorded the highest-ever profit for a public sector enterprise in Kerala and surpassed a turnover of Rs. 1,000 crore. Notably, KMML developed indigenous technology to extract iron from iron oxide. • Foam Mattings Limited, which had operated at a loss for 18 years, is now in profit. A delegation of MLAs from Mizoram visited the Industries Minister’s office on October 23rd to study the performance of Kerala’s public sector industrial enterprises.
Industrial Parks Gaining Momentum
T he state government’s flagship Private Industrial Parks initiative has been transformative. Approvals have been granted for 31 parks, with two already operational and others under various stages of construction. Over 80 colleges have shown interest in the Campus Industrial Parks project, aligning with Kerala’s higher education institutions. Multi-storey industrial estates have been inaugurated in Punnapra (Alappuzha district) and Puzhakkalpadam Phase-2 (Thrissur district). Allotment has been made to 28 entrepreneurs at the Varavoor Industrial Development Plot in Thrissur. A standard design factory, covering 1.2 lakh sq. ft., was completed and inaugurated in Ramanattukara Advanced Technology Park for IT/ITES industries, with 90% of the allotment completed. T he Kinfra Spices Park completed its first phase of development and was inaugurated on October 14, 2023. The first phase of the Kakkanad International Exhibition-cum-Convention Centre has been completed. A new standard design factory for IT/ITES industries is under construction in T hiruvananthapuram, with an investment of Rs. 600 crore and is expected to be completed next year.
KINFRA
Approximately 10 acres of land and 60,000 sq. ft. of built-up area have been allocated for the Graphene Park at Ottapalam KINFRA Defence Park. The Graphene Aurora Project, worth Rs. 94.85 crore, has been approved to promote industries working in advanced material technologies, including graphene, through Kerala Digital University. The Graphene Production Facility Centre, a four-storey, 60,000 sq. f t. state-of-the-art facility, was completed and handed over to the implementation agency within a year of its 76 KERALA CALLING 2025 MAY KERALA CALLING 2025 MAY announcement. T he KINFRA Petrochemical Park project, with an investment of Rs. 1,200 crore and spread across 481 acres, has begun. Already, 230 acres have been allocated to 35 companies, and functioning of companies has commenced even before the official inauguration. T he park is projected to attract Rs. 10,000 crore in investments. BPCL’s proposed polypropylene unit is also set to begin operations. In Kannur, 1,054 acres of land have been identified as part of a new land bank. Additionally, 45.96 acres have been acquired in Keezhalloor village for the expansion of Mattanur KINFRA Industrial Park. The handover of 500 acres in Pattanur, Kizhallur-Vellaparamba villages, and the acquisition of 500 acres in Ancharakandi Panayathamparamba, Paduvilai, and Kizhallur are nearing completion. T he Kakkanad Electronics Manufacturing Cluster is being developed on 66 acres. Land has already been allotted for seven units, with an expected investment of Rs. 820 crore and the creation of 11,230 jobs. Kerala’s f irst modern Spices Park has officially commenced operations.
Keltron
Keltron achieved a record turnover of Rs. 643.66 crore and an operating profit of Rs. 42.52 crore in the financial year 2023–24. It contributed to India’s Chandrayaan-3 and Aditya GH1 missions and received three new major orders. These include order to build Flight in Air Mechanism Module from the Naval Science & Technological Laboratory, Visakhapatnam; India’s first indigenously developed Torpedo Power Amplifier; to be partner in the manufacturing of India’s Autonomous Underwater Vessel from Rekise Marine Private Limited and build Bow and Flank Arrays. India’s first super capacitor manufacturing facility was inaugurated at Keltron Component Complex Limited. Norway-based Eltorque signed an agreement with Keltron for the joint design and manufacture of electro hydraulic actuators. Keltron won Rs. 197 crore order from Nagpur Corporation. Keltron also won Rs. 168 crore contract from the Food Corporation of India for the installation, testing and operation of CCTV cameras across 561 depots nationwide.
Some of the Major Investments in Kerala
Within a year and a half of its launch, Meet the Investor scheme made Kerala the first state to attract investment promises worth Rs. 11,000 crore. • German company dSpace, a leader in automation, has begun operations. • Maritime giant Kongsberg has opened office in Kerala. • The Levage Group launched Kerala’s first crane manufacturing unit in Thrissur with a Rs. 300 crore investment. • IBM established operations in Kerala and expanded to employ 2,000 people within a year. • Acsia Technologies, a global automotive software leader, opened its R&D center and global headquarters in Thiruvananthapuram. • Systrome Technologies started an electronics equipments manufacturing unit with over Rs. 100 crore in investment. • Safran, a leading aerospace and defence company in the world, opened its first Kerala unit. • Craze Biscuits launched a Rs. 200 crore manufacturing facility. • Industrialist Kochouseph Chittilappilly initiated a Rs. 145 crore wellness project. • Strada Global, a U.S.-based payroll and financial services firm, expanded their activities in Kerala. • World-renowned company HCL Tech started its first unit and announced a second. • Magnus Plywoods, supplying materials for Vande Bharat trains, began operations in Kasaragod. • Ireland-based TRASNA Solutions Technology Limited, operating in semiconductors and IoT, started in Kerala. • BT Pierian, a joint venture between Baker Tilly US and Indian-based Pierian Services, opened its first Kerala office. • Within six months of announcement, IBM launched its largest Generative AI Innovation Centre in Kerala, the only location globally with two IBM centers in two years. • NOV Inc., the oil and gas company based in USA, opened India’s first Global Capability Centre in Kerala. • Global IT service provider, German IT firm Adesso expanded operations with a new office in Kochi Infopark. • French consultancy TNP Consultants opened a new Kerala office. • Ernst & Young, a global professional services firm, launched one more new office in the state.