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Kerala State Textile Corporation Ltd (KSTC) was incorporated in 1972 as a fully owned subsidiary of Kerala State Industrial Development Corporation Ltd (KSIDC) with the main objective of setting up/running textile mills in the State of Kerala. The Corporation was looking after the affairs of four private textile mills namely Alagappa Textiles Ltd (Kochi), Parvathy Mills Ltd (Kollam), Vijayamohiny Mills Ltd (Thiruvananthapuram) and Kerala Lakshmi Mills Ltd (Thrissur) as controller and custodian authorised by Government of Kerala till 1975, since they were transferred to National Textiles Corporation (NTC). In 1973, KSTC took over the management of Trivandrum Spinning Mills Ltd (Balaramapuram) and the Bleaching & Calendaring Plant (Balaramapuram) for a period of five years till a separate Board was constituted for TSM.
KSTC started operations in 1978 by taking over the management of three closed textile mills in the private sector namely Kottayam Textiles,Prabhuram Mills and Malabar Spinning & Weaving Mills under IDR Act. The units were nationalized and were vested with the Corporation with retrospective effect from 01 SEP‘83 in accordance with the provisions of Kerala Sick Textile Undertakings (Acquisition & Transfer ofUndertakings) Act, 1985
As part of its efforts to revive the Mills, KSTC implemented modernization schemes at Prabhuram Mills and Kottayam Textiles, thereby improving the profitability of those units. KSTC also set up one testing laboratory, Centre for Applied Research & Development in Textiles (CARDT) in the year 1982 and Edarikkode Textiles in the year 1987.
Two other units viz., Sitaram Textiles Ltd and Trivandrum Spinning Mills Ltd were vested under the administrative control of the Kerala State Textile Corporation Ltd. in 2009-10. The Corporation added three more new Units to its fold viz., Komalapuram Spinning & Weaving Mills (erstwhile Kerala Spinners Limited) Alappuzha, Hi-Tech Weaving Mills, Pinarayi and Uduma Textile Mills, Kasaragod.
KSTC has paved way for the industrialization and development of the State with seven Mills and a state of the art Lab under its fold.