Salona Cotspin is a textile manufacturer built on a single craft - spinning cotton yarn and knitting it into fabric for the hosiery and garment trades - a business it has refined over five decades of cotton-procurement experience. Incorporated in 1994 in Tamil Nadu and run from two mill units in the Erode and Coimbatore districts, the company has progressively added captive wind and solar power to tame its single largest input cost, because spinning is an electricity-hungry process and cotton itself is a rain-fed commodity whose price swings with the monsoon. That recurring logic - own the core manufacturing step, then own the power that feeds it - explains how a single-segment textile mill competes across both domestic and export markets.
Business segments
A single textile engine, powered by captive renewable energy - spinning, knitting and garmenting under one roof, with windmills and solar plants cutting the cost of every kilo produced.
1. Cotton yarn and knitted fabrics: the mill that spins and knits for the garment trade
The company takes in raw cotton, spins it into yarn, knits that yarn into fabric, and stitches some of it into garments - selling almost everything to other manufacturers who make hosiery and knitted clothing.
- Spinning is the anchor - the mill produced 48.89 lakh kilograms of cotton yarn in FY25, up from 43.60 lakh kilograms the year before, with the entire output feeding either direct yarn sales or the company’s own knitting operation.
- Two mills, one product family - Unit-1 sits in Erode District and Unit-2 in Coimbatore District, together housing 25,488 spindles before a recent expansion added 18,000 more spindles at the Coimbatore site, with commercial production from the new spindles beginning in January 2025.
- B2B customers, widely spread - the buyers are hosiery and knitted-garment manufacturers, given credit terms ranging from a week to six months, and no single customer or region dominates the book because the base is scattered both economically and geographically.
- Traded goods fill the export basket - alongside its own production, the company buys and resells cotton yarn and fabrics, and this trading activity makes up a significant portion of export sales, with revenue recognised on the date of shipment.
- A brief detour into branded retail - in FY21 the company sold women’s casual wear under the brand ‘NEWRIE LONDON’ through distributors and company-owned showrooms, but by FY25 the portfolio description had returned to its core: cotton yarn and knitted fabrics.
Captive renewable energy
Windmills and solar plants generate electricity that the mill consumes directly, shrinking the power bill that otherwise eats into spinning margins.
- Wind farms across two states - the company owns wind electric generators at four villages in Tamil Nadu (Panakudi, Sinjuvadi, Vadambhacherri and Kozhumankondan) and one in Jamnagar, Gujarat, with the 2.10 MW Gujarat machine commissioned in July 2023 and its output sold to third parties within the state.
- Solar on the roof and on the ground - a rooftop solar plant sits at the Erode mill, while a 2.00 MW ground-mounted solar plant in Namakkal District, Tamil Nadu, was installed during FY22; the ground-mounted plant generated 33.82 lakh units in FY25.
- Generation that tracks the mill’s need - in FY25 the Tamil Nadu windmills produced 58.92 lakh units (net), the Gujarat wind generator 71.44 lakh units, and the ground-mounted solar plant 33.82 lakh units, all feeding either the factory or third-party offtakers and directly lowering the cost of running the spindles.
Group structure and partners
A standalone listed company with no subsidiaries, tightly held by its promoters and transacting with related firms that share the same controlling shareholders.
- No subsidiaries or joint ventures - the company has no subsidiary, associate or joint venture, and its only non-current investment is 6,420 equity shares in an unquoted entity, Echanda Urja Private Limited.
- Related-party trade in cotton and yarn - the company buys and sells cotton, yarn, fabrics and garments with Shristi Cotspinn Private Limited, Salona Spinntex Private Limited and Sri Sadhyaa Exports Private Limited, entities that share common promoters, with shareholder approval obtained for transactions up to an aggregate of Rs. 33 Crores for Shristi Cotspinn Private Limited in FY25.
- Listed on the NSE, delisted elsewhere - shares trade on the National Stock Exchange of India; the company applied for voluntary delisting from the Calcutta Stock Exchange and its shares were withdrawn from the BSE Indonext segment in 2014, with 96.86% of shares now held in demat form with the two depositories.