Bannari Amman Spinning Mills is a textile maker that does something unusual: it spins the yarn, weaves and knits the fabric, and then finishes it into bedsheets and dyed cloth - all under one roof in Tamil Nadu. Founded in 1989 by the South Indian Bannari Amman Group, it grew for three decades as a classic integrated mill, but in FY24-FY25 it made a sharp pivot, selling its garment factories and announcing plans to enter maternal healthcare. The recurring idea that explains the company is vertical integration - each stage feeds the next, so it captures the margin a standalone spinner or weaver would leave on the table. # Business segments Three engines that feed each other - a spinning workhorse that supplies the group’s own weaving and knitting units, a fabric-and-finishing platform that turns yarn into bedsheets and dyed cloth, and a captive green-power fleet that lowers the electricity bill for all of it. ## 1. Spinning: the factory that feeds everything else **With 145,440 spindles across two sites, this is the company’s largest business and the one whose performance drives the whole group.** - **Yarn at scale, then upgraded** - the two Dindigul units can produce about 105 tonnes of cotton yarn per day, and in FY25 they began spinning finer 80s and 100s counts for premium uses, alongside a new line of polyester-cotton blended yarn. - **Raw material is the wildcard** - cotton is the main input, and its price swings with global supply, Indian export policy and the monsoon, which is why the company’s results rise and fall with spinning. - **Sells to the world and to itself** - yarn is sold in dollars, euros and pounds to export customers, but a large share also travels down the hall to the company’s own weaving and knitting units, cutting out a middleman. ## 2. Weaving, knitting and home textiles: turning yarn into fabric and finished sheets **These three units take the yarn from the spinning mills and convert it into wider-width grey fabric, Lycra-blend knits and export-ready bed linen - mostly to order.** - **Weaving on 153 looms** - the Coimbatore weaving shed makes wider-width cotton grey fabric against customer orders, and a portion is transferred straight to the home-textiles unit next door rather than sold on the open market. - **Knitting with Lycra** - the Dindigul knitting plant can produce 5,200 tonnes of fabric a year, focusing on value-added Lycra blends and running against orders at roughly 20-25 tonnes a day. - **Bleaching and bedsheets for export** - the home-textiles unit takes woven fabric from the group’s own looms and makes bleached fabric and made-ups, mainly bed linen, for export markets; management calls it a focus area and has trialled terry towels. - **Dyeing for hosiery, plus job-work** - the processing plant at SIPCOT Perundurai can dye and finish 5,400 tonnes of fabric a year for the hosiery segment, and when its own orders are light it takes on job-work for outside customers. ## 3. Captive power: a private wind-and-solar hedge against the grid **Twenty-seven windmills and a new solar farm generate green electricity that the company consumes entirely inside its own spinning and weaving sheds.** - **23.40 MW of wind, no resale** - every unit of power from the 27 windmills across Tirunelveli, Tirupur and Dindigul districts is captively consumed by the spinning and weaving units, insulating them from grid-price volatility. - **Solar coming online** - in mid-2025 the board approved a 9.74 MW DC solar project on land at the Velvarkottai spinning unit, expected to generate about 15 million units a year and cost roughly ₹40 crores. # Group structure and partners **The company sits inside the Bannari Amman Group, a family-controlled South Indian house, and has spent the last two years radically simplifying its subsidiary web.** - **Held by the promoter** - the holding company is Murugan Enterprise Private Limited, which has also lent the company inter-corporate deposits. - **One remaining subsidiary, one planned** - the wholly owned Bannari Infotech Private Limited survives, with an outstanding inter-corporate deposit of ₹550.00 Lakhs plus interest of ₹221.05 Lakhs (total loan ₹771.05 Lakhs), and in December 2024 the board approved incorporating a new wholly owned subsidiary to focus on exports. - **A wider group network** - related parties under common control include automobile distributors (Anamallais Agencies, Shiva Automobiles), a flour mill, and the listed textile company Shiva Mills Limited, while the company holds equity stakes in Bannari Amman Sugars and several power-generation entities.