Komalapuram spinning & Weaving Mills
M/s Kerala Spinners Ltd. (KSL) was incorporated in the year 1964 to implement a Spinning Mill at Komalapuram in Alappuzha District based on an industrial licence issued to Kerala State Industrial Development Corporation Ltd (KSIDC). The Spinning Mill was subsequently set up with M/s. Grasim Industries Ltd. as the private promoters and commercial operation commenced with effect from 04-08-1969 with a capacity of 3888 spindles, which was subsequently enhanced to 18040 spindles.
The acute competition of the textile industry, inefficiency and mismanagement pulled down the profitability of operations of the mills.
Subsequently, the management terminated the operations and closed down the company with effect from 23.03.2003.
The Company had closed its operation without issuing the proper notice or obtaining permission for State Government.The workers challenged the illegal closure of the company and filed a case in the labour court against the management.The Company made a reference to BIFR and was declared sick on 07.09.2006.Indian Overseas Bank was appointed as the Operating Agency to work out a Revival Plan.However, due to non-cooperation from the management, a revival programme could not be formulated.
As no serious steps were initiated by the promoters to reopen the Company, which was the livelihood of more than six hundred odd families, the Government intervened to find out an amicable solution to open the mill and restart operations. The government had stated its plan to take over the Company by an ordinance to protect the interest of the workers.Based on the memorandum of settlement signed between the management and workers on 07.03.2006, a voluntary retirement scheme (VRS) was agreed to and Rs .5.18 Crores was sanctioned
In the meantime, the Honourable Governor of Kerala promulgated an ordinance on 17.11.2009 for taking over of the Company.The ordinance , called "The Kerala Spinners , Alappuzha (acquisition and transfer of undertaking) ordinance, 2009", provides for the acquisition and transfer of Kerala Spinners Ltd , Komalapuram , Alappuzha and the right, title and the interest of owners in respect of undertakings with a view to reorganizing and rehabilitating the undertakings and for matters connect therewith or incidental thereto. This subsequently became Act 4 of 2010.
As per the said Act, the unit along with the right, title and interest of the owner in relation to the unit, stands transferred to and shall absolutely vest in the State Government, on 07.09.2006. Immediately after it has so vested, it stands transferred to, and vests in, the Kerala State Corporation Ltd( KSTCL).
A new project was implemented and commencing of operations was inaugurated by the Hon'ble Minister for Industries on 15th Feb 2011.Due to cost escalation and other unforeseen reasons, the Mill could not start commercial production.On 23 May 2015, the Mill was started again after implementation of first phase of operations as per new revised project report (DPR).
The Plant and machinery are of state-of-the-art and the product is likely to meet quality requirements even for the export market.The project will provide employment for 376 workmen directly and around 2000 people indirectly.