Salem Textiles (STL), incorporated in Jul.'64, was promoted by N Ramasamy Udayar and his associates. It commenced production in 1967 with 6000 spindles. The company produces cotton carded and combed yarn as well as special high-value-added yarn with counts ranging from 16s to 100s.R Prabhakaran is the Managing Director.
STL came out with a public issue (premium : Rs 30) aggregating Rs 7.80 cr, in Mar.'93. The amount was raised to set up a joint venture in Malaysia for dyeing and processing yarn with an installed capacity of 11.2 lac kg pa, and to undertake a project for manufacture of melange yarn and optical white yarn. The project had been set up near Trichy, Tamilnadu,at a cost of Rs 1.50 cr.
The joint venture project at Malaysia faced a set back due to the death of Malaysian Promoter and the depressed global markets. Due to erosion of networth the company has been referred to BIFR as per the provisions of SICA. The hearing of the case is awaiting and the company is expecting that it will be declared as a Sick Industrial company by the Board.