The company was incorporated on 29th July,1964 at Chennai.  It was
 promoted by N. Ramaswamy Udayar and Associates.  The capacity of the
 plant increased over the years and reached 40,468 spindles and 744
 rotors in 1992-93.  The Main objects of the company is to
 manufacture cotton and other types of yarn.
 
 The expansion over the years was carried out by the company from term
 loans from financial institutions and internal accruals.The company
 had also been continously modernising its plant and machinery to
 include state-of-the-art equipment for the manufacture of high
 quality yarn to conform to the international standards. 
 
 
 1986 - Till date 1,60,729 shares allotted as bonus shares allotted
 as
        bonus shares (91,500 shares on 8.9.1975 prop. 3:10; 69,229
 shares
        on 28.11.1981 prop. 1:6).
 
 1990 - The company had taken up a modernisation scheme which was 
        financed out of term loan from financial institutions and the
        balance from internal accruals.
 
 1991 - The company received permission to set up 100% EOU for
        manufacture of cotton yarn with an installed capacity of
 10,560
        spindles.
 
      - A joint venture Company under the name Salem Textiles & Dyeing
 
        (M) SDN BHD was incorporated at Malaysia for dyeing and
        processing of yarn with an installed capacity of 11.20 lakh
 kgs.
        per annum.  This joint venture was promoted by the Company
 with
        foreign collaborators - Islamic Council, a quasi Government
 body
        and Adam Abdul Ahad, Malaysian Industrialist.
 
      - The entire yarn requirement will be supplied by the company
 and
        processed by the joint venture into dyed yarn for export to 
        other countries.
 
      - 8,76,493 shares allotted to promoters.
 
 1992 - The company proposed to set up a processing unit at Mathur in
        Pudukottai district of Tamil Nadu for dyeing of fibre with an
        installed capacity of 9,000 kgs. per month.
 
      - The company is planning to set up a spinning mill at Karaikal
        with an installed capacity 21,600 spindles.
 
      - In August the company issued privately to UTI non-convertible
        debenture for Rs. 175 lakhs carrying interest of 20% per
 annum.
        These debentures are redeemable at a premium of 5% in three
 equal
        annual instalments commencing from 27th August, 1998.
 
      - The Main objects of the Public Issue is as follows:
  
      - (1) To part finance the investment in the proposed joint
 venture
        company.
 
      - (2) To extend deferred credit facility for purchase of Indian
        machinery for the proposed joint venture company.
 
      - (3) To meet the cost of setting up a fonre dyeing unit at
 Trichy.
 
      - (4) To meet a part of the working capital requirements and
        capital expenditures.
 
      - (5) To enable Company to have its shares listed on the Stock 
        Exchanges.
 
      - 23,507 Shares allotted to promoters.  30,00,000 bonus shares 
        issued in the proportion 2:1.
 
 1993 - 21,00,000 Shares issued (Prem. Rs. 30 per share) of which
 43,750
        shares to UTI and 1,06,250 shares to ICICI were reserved and 
        allotted on preferential basis.  Of the remaining 19,50,000
        shares, 50,000 shares taken by employees, were offered to the
        public in March.  All were taken up.
 
 1995 - Due to depression in Global market and resource constraints
        faced, the Company has shelved the project for the time
 being.
 
 1996 - The company has proposed to disinvest its shareholding in the
        Malaysian Joint Venture due to the death of Malaysian
 Promoter,
        Mr. Adam Abdul Ahad and the prevailing recessionary trend in
        the global market.
 
      - Consequent to restructuring of production, the company has
        proposed to dispose off the processing plant at Trichy.
 
      - Salem Textiles SA, Geneva and Salem Textiles & Dyeing (M) SDN
        BHD, Malaysia are the two subsidiary companies.
 
 1997 - The labour relations suffered a setback and the workers
 resorted
        to strike from 2-4-98 to 28-5-98 during which period the
        operations the mills suffered further.
 
      - The company has made arrangements for fabrics and garments
 made
        out of yarn manufactured by the company.  The garments were
        launched initially in domestic market under the trade name
        ARCADIA which received a good response.