Incorporated in Sep.'89 as a private limited company, Chhabra Spinners was converted into a public limited company in Jan.'95. The company set up a spinning unit at Dhamnod, Madhya Pradesh, which commenced commercial production in Apr.'91. It was promoted by Satnam Singh Chhabra, Mandeep Singh Chhabra and Gurdeep Singh Chhabra.
The company undertook an expansion programme in 1993-94 to install an additional 3840 spindles and necessary balancing equipment. The scheme was completed by Jun.'94. Again in 1994-95, the company envisaged the expansion of its capacity, in two phases. In the first phase, which became operational partially in Apr.'95, it installed additional 6048 spindles, to raise the total capacity to around 10,000 spindles. In the second phase, it installed two autoconers and 2520 additional spindles.
The company came out with a public issue in Feb.'96 to part-finance its project.
During 1996-97, company has recorded a higher sales & other income of Rs. 21.61 cr as compared to 15.47 cr in the previous year. The cotton price was higher during the year so therefore operating profit was effected. Company has increased the installed capacity of Yarn by 90 MT.