Description : With the nationalisation of banks in 1969, priority sector lending received greater impetus. One of the fields identified as a priority area was the development of Small and Medium Enterprises (SMEs). It was also recognised that the technical competence then available within the banks to identify viable projects and appraise them needed to be supplemented. The consultancy profession had also not developed to the extent the SMEs/banks could rely on. Under these circumstances, it was considered necessary to set up a specialised professional consultancy organisation in each state in order to fulfil this felt need and fill in the gap. The proposal had the blessings of the Central Govt and the RBI. The initiative and responsibility for setting up such Technical Consultancy Organisations (TCOs) was entrusted with the Development Financial Institutions (FI) led by IDBI. Thanks to the activism of the then Govt of Kerala, the first of such state-level TCOs was set up in Kerala, in the year 1972, with IDBI, IFCI, Govt. of Kerala, KSIDC, KFC, Indian Bank, Indian Overseas Bank, Canara Bank, Syndicate Bank and Union Bank of India as the promoters.

The main objective of KITCO, as initially envisaged, was to provide quality advice and consultancy service at an affordable price mainly to SMEs for identifying, planning and formulating their projects and to the FIs and banks for a systematic appraisal of industrial finance proposals. Therefore, the basic thrust in the initial years was in Project Consultancy, namely preparation of project reports, appraisal reports, techno-economic feasibility studies, market surveys, etc. The emphasis was also on the development of entrepreneurship in the State. The organisation also built up its strengths in conducting special studies like Industrial Potential Surveys sponsored by the State Government, IDBI, etc. The company, in addition, offered management consultancy services for improving organisational efficiency and productivity. Subsequently, the Company diversified its activities into various related fields like detailed engineering & project execution, asset valuation, energy audits, skill certification, etc.

Consulting is a knowledge-based profession and relies much on the expertise and experience of its core team of Consultants who are basically knowledge-workers. KITCO has built up a strong team of qualified and experienced engineers and other professionals, who continually strive to excel in their chosen fields and are good analysts and managers. There are more than 100 engineers now on the rolls of KITCO, in disciplines such as Civil, Mechanical, Chemical, Electrical & Electronics, IT, etc. Other professionals include Economists, Financial, Management and Marketing experts, Computer programmers, etc. There is a systematic training programme in KITCO for upgrading the skills of the Professional Staff.

From the foregoing, it may be observed that KITCO has become a well-diversified consultancy organisation. The most important among the core competencies of the organisation is Detailed Engineering, which covers Planning, Design, Contracting and Project Management & Supervision. KITCO has implemented more than 250 projects, large and small, with project costs ranging from a few lakh rupees to over Rs.100.0 crore.

KITCO has already extended its services to projects and clients outside Kerala, and the Company would increasingly look forward to such business in the years to come. An office has been opened in Bangalore to handle the project management of IOC`s Retail Outlets taken up during 2004.

For a Company whose primary objective was to serve SMEs, income was moderate in the initial years. With the eventual change in the business mix and the client profile, the Company has since been able to make substantial progress on the income front and its turnover crossed Rs.400.0 lakh during FY 2004-05.

The Company has been paying dividend consistently from the financial year 1997-98.