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
bonus shares (91,500 shares on 8.9.1975 prop. 3:10; 69,229
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
- 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
per annum. This joint venture was promoted by the Company
foreign collaborators - Islamic Council, a quasi Government
and Adam Abdul Ahad, Malaysian Industrialist.
- The entire yarn requirement will be supplied by the company
processed by the joint venture into dyed yarn for export to
- 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
These debentures are redeemable at a premium of 5% in three
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
- (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
- (4) To meet a part of the working capital requirements and
- (5) To enable Company to have its shares listed on the Stock
- 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
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
1996 - The company has proposed to disinvest its shareholding in the
Malaysian Joint Venture due to the death of Malaysian
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
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
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.