Sri Nachammai Cotton Mills Limited (SNCM) was incorporated in March 1980 as a wholly owned subsidiary of " Jawahar Mills Limited". The assets of the Chettinad unit of the Jawahar Mills Limited, was transferred to SNCM in May 1980. A transfer deed for the above transfer was executed and registered in March 1982. It ceased to be a subsidiary of The Jawahar Mills Limited with the allotment of the said 46,000 shares on 9.8.1982. In September 1984, the Company issued 50,000 equity shares of Rs.10/- each for cash at par to the existing shareholders as right shares. Since then, the Company has made five bonus issues.
The Company has been expanding and modernizing its plant over the years. All expansions and modernisation schemes completed so far has been funded from internal accruals and Long-term borrowings. It has expanded its spindlage from 16,120 spindles in 1980 to the present level of 53,664 spindles and 504 Rotors.
The Company's spinning mills are situated at Chettinad, Sivaganga District. The Company has two units there. The Company has taken another unit called 'C' Unit from M/s. Supreme Yarn Spinners Limited, on lease in 5.5.1995, situated at Veeranam village, Salem. The Company manufactures combed, carded and compact cotton hosiery and hank yarn of counts ranging from 10s to 80s which are used by manufacturers to convert the same into fabric or garments for dyeing and export.
The Company has issued 11,10,000 Equity shares of Rs.10/- each at a premium of Rs.60/- per share to the public in 1995.
The Company has issued 15,00,000 - 10% Cumulative Redeemable Preference Shares of Rs. 100/- each on 26.04.2012 Inspite of the best efforts of the Company and in view of the carried over losses, the inability to infuse massive fresh funds and the non –feasibility of making fresh issue of shares has inevitably led the Board of Directors to approach the Preference Shareholders to extend the period of redemption of shares and vary the terms and conditions of the Shares. 15,00,000 - 10% Cumulative Redeemable Preference Shares of Rs. 100/- each shall now and hereafter be 15,00,000 - 0% Redeemable Preference shares of Rs.100/- each with effect from 25.04.2015.
The Company has attained a sound financial footing with its good performance over the years and is surging ahead towards better prospects every year.Home