Punjab Woolcombers (PWL) was initially promoted by the Punjab State Industrial Development Corporation (PSIDC) to set up a wool combing unit in Punjab, which has a thriving knitting industry. The Lala Vidyasagar Oswal group joined with PSIDC in 1977 and, in 1983, enhanced the wool combing capacity from 0.67 mln kg to 2.0 mln kg, with fibre, wool tops and yarn dyeing facilities.
Over the years, PSIDC disinvested its shareholding in favour of the promoters and, in 1987, PWL was wholly owned by the Lala Vidyasagar Oswal group. The company entered the capital market for the first time in 1979. In 1989, the company offered equity shares on a rights basis and during 1994-95, capitalised part of its accumulated reserves and surplus with a 1:2 bonus issue.
PWL is among the first in India to be allowed by the International Wool Secretariat to use the prestigious Woolmark. The company has set up a lamb's wool spinning unit for high value-added yarn.
During 1995-96, it signed a MoU with Punjab State Industrial Development Corporation to establish a fertiliser complex to manufacture ammonia.