Sambandam Spinning Mills Ltd Company Summary

Sambandam Spinning Mills Ltd Summary

Sambandam Spinning Mills Ltd (SSML) was incorporated in 1973. The Company is into the business of manufacture of Yarn (cotton, synthetic, etc.) and Fabric. It has 4 manufacturing locations around Salem, 12.35 MW Wind Energy Converters located in Tirunelvelli District, Tamil Nadu State and 9MW of solar energy plants which produce electricity for its own consumption and for sale. The Company manufactures yarn at its three spinning mills in Tamil Nadu, of which two are in Salem district and one in Coimbatore district. It allotted bonus shares in the ratio of 1:2 in May 94. Subsequently, in Aug.94, it offered rights at a premium of Rs 40 per share. Presently, the total installed spinning capacity of the mill is 47,356. SSL went public in Jan.95 at a premium of Rs 40 to part-finance its expansion programme to have an installed capacity of 50,460 spindles. This is likely to be completed in Mar.97. The company started a windmill project from Sep.95, to generate 225 kW power, at Poolavadi in Coimbatore district. In 1995-96, SSL earned foreign exchange worth Rs 33 lac. During 1996-97, due to uptrend in the price of Yarn and Cotton, the company is not in a position to hazard any favourable change in the profitability of the company. In 1996-97, SSL earned foreign exchange worth Rs. 98 Lacs. In May 1998, the company was awarded the ISO 9002 Qality Accreditation certificate by SGS, a testimony for quality work processes.During the year 1999-2000, the Company availed term loans from financial institutions towards working capital to an extent of Rs. 1070 lakhs and repaid term loans to an extent of Rs. 316 lakhs. The Company also incurred capital expenditure of Rs. 187 lakhs during the year.The Company energized two Wind energy converters (WEGs) at a cost of Rs.1238 Lakhs in Tirunelveli District during the year 2005-06. It energized three Wind Energy Converters (WECs) costing Rs.18.60 crores in Uthumalai Village, Tirunelveli District, Tamil Nadu during the year 2006-07. The Companys modernisation and expansion programme implemented costing Rs.40 crores during the year 2006-07 resulting in addition of 13392 spindles started functioning during the year. Companys expansion project involving installation of 10,800 spindles was commissioned in July 2008.During the year 2010, 3600 Spindles were added to the capacity in third unit, thereby increasing the total installed capacity to 89,052 spindles from 85,452 Spindles. During the year 2020-21, the Company started operating its Unit IV (with 27,000 spindles) from June 2021 consisting of spinning plant and machinery which was purchased from Kandhagiri Spinning Mills Ltd (KSML )during the month march FY 19-20 and thereby the expanded capacity was put to use fully, and functioning as Unit IV of SSML