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Sambandam Spinning Mills Ltd. Company History and Annual Growth Details

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 of
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 37700 Spindles.

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 markets.

1996-97:

Inspite of the political scenario in the Country during 1996-97 being
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.

2005

-The Company has recommended a dividend of Rs 5/- per share of face value of Rs 10/-

2006

-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.

2007

-The Company has recommended a dividend of Rs 6.00 per share of face value of Rs 10 each.

2008

-The Company has recommended a dividend of Rs 2.50 per share of face value of Rs 10 each.

2011

-The Company has recommended a final dividend of Rs. 2 per equity share of Rs. 10 each.

2012
-The company recommended a dividend of Rs. 2 per equity share.

2014
-The Board inducted Sri S. Gnanasekharan as an independent director .

2020

-The company purchased Plant and Machinery from kandagiri Spinning mills Ltd.

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