Company History - Sambandam Spinning Mills
Sambandam Spinning Mills Limited was incorporated as a private
limited Company on 7th Nov. 1973 under The Companies Act, 1956. The
word Private was deleted under the provisions of Section 43A (2) of
the Act with effect from 1st July, 1989 when it became a deemed
public limited company. The Company became full fledged Public
Company with effect from 17th June, 1994.
The Company has two units situated at Salem and Ayeepalayam. The Unit
at Salem (Unit I) was started in 1974 and is now having a spindleage
of 25,220 spindles. The Unit commenced commercial production in May,
1974 with an installed capacity of 3,300 spindles. The spindleage was
gradually expanded in stages to 15000 between the years 1974 and 1980.
The expansion was financed by way of Term Loans from Financial
Institutions to the tune of Rs.39 lakhs, Deferred Payment Guarantees
Rs.257.24 Lakhs from Tamilnadu Industrial Investment Corporation
(TIIC) and State Bank of India (SBI). Further expansion programmes
were undertaken between 1980 and 1988 to increase the spindleage from
15,000 to 25,220. The capacity increase was financed by way of term
loans from SIPCOT, and also internal accruals.
The second unit at Ayeepalayam, Athanur in Salem District (Unit II)
was started in 1990 with an installed capacity of 5,760 spindles at a
cost of Rs.335 Lakhs. The capacity was expanded to 12480 spindles in
1993 at a cost of Rs.565 Lakhs. Both the above projects were
financed by way of term loans from IFCI and also internal accruals.
At present the Company has a combined aggregate installed Capacity of
The Company has a sound track record of productivity and
profitability, and has been producing high quality yarn for the
domestic market. The Company has also been regular in modernising
its unit and at present almost all the machines at its existing Units
are fully modernised. The Company's product range includes cotton
carded and combed yarn in the count range from 20s to 100s. The
company's products are well received in the local and international
Inspite of the political scenario in the Country during 1996-97
full of uncertainties, the industrial production was not in any way
hindered. But the textile industry with the prices of cotton ruling
very high and those of yarn remaining unremunerative during most part
of the year went through a trying period. The situation eased up only
during the last quarter of the year.
-The Company has recommended a dividend of Rs 5/- per share of face
value of Rs 10/-
-The Company has recommended a dividend of Rs 6.50 per share of face
value of Rs 10/- including a special dividend of Rs 0.50 per share.
-The Company has recommended a dividend of Rs 6.00 per share of face
value of Rs 10 each.
-The Company has recommended a dividend of Rs 2.50 per share of face
value of Rs 10 each.
-The Company has recommended a final dividend of Rs. 2 per equity
share of Rs. 10 each.
-The company recommended a dividend of Rs. 2 per equity share.
-The Board inducted Sri S. Gnanasekharan as an independent director