Lakshmi Mills
The Lakshmi Mills Company Limited is one of India's oldest and most established textile manufacturers, founded in 1910 by entrepreneur G. Kuppuswamy Naidu in Coimbatore, Tamil Nadu, as an Indian-owned enterprise during British colonial rule.[1][2] Specializing in the production of high-quality yarns and fabrics, the company has evolved from supplying raw materials to a diversified portfolio that includes technical textiles, niche products like Modal and X-Static yarns, and exports to international markets, while operating as a publicly listed entity with 327 employees (as of March 2024).[2][1][3][4] Under successive family leadership, Lakshmi Mills has marked key milestones, including the introduction of world-class machinery through Swiss collaborations in the mid-20th century, the development of hybrid cotton varieties like Suvin in the 1970s to replace imports, and the adoption of computerized operations and ERP systems in the 1990s to enhance efficiency.[1] The company operates across two primary segments—textiles for manufacturing yarns and fabrics, and real estate rentals—while emphasizing research and development to secure numerous industry certifications and meet global standards.[3][2] In recent years, as of 2025, parts of the historic mill complex in Coimbatore, once central to its operations, have been repurposed into a cultural landmark, blending industrial heritage with modern community spaces to support ongoing corporate social responsibility initiatives.[5] This transformation underscores Lakshmi Mills' enduring legacy in India's textile sector, where it continues to innovate amid a century-plus of adaptation and growth.[1]Overview
Founding and Location
The Lakshmi Mills Company Limited was founded in 1910 by G. Kuppuswamy Naidu as a public limited company in Coimbatore, Tamil Nadu, India, during the period of British colonial rule.[6][1] The company's origins trace back to 1907, when Naidu established a small ginning factory at Naranapuram in Coimbatore, equipped with two gins powered by bullocks to process local cotton.[6] Incorporated with a registered capital of one lakh rupees, the mill initially focused on cotton ginning and trading, marking an early step toward building a domestic textile infrastructure.[6] Headquartered at 686, Avinashi Road, Papanaickenpalayam, Coimbatore - 641 037, the company remains rooted in this industrial hub of South India, where Coimbatore's proximity to cotton-growing regions facilitated its growth.[7] This location in Tamil Nadu underscores its enduring presence in the region's textile landscape, positioning it as one of India's oldest surviving yarn and fabric manufacturing companies.[8] From its inception, Lakshmi Mills embodied Naidu's vision to bolster local agriculture through cotton processing and diminish India's reliance on imported textiles, at a time when British dominance heavily influenced the sector.[1] This foundational emphasis on self-sufficiency laid the groundwork for the company's role in supporting Coimbatore's agrarian economy and fostering indigenous industry.[1]Core Business and Significance
Lakshmi Mills Company Limited primarily engages in the manufacturing and trading of cotton and synthetic yarns, as well as fabrics, garments, and weaving products, serving both domestic and international markets.[9] The company's textile operations focus on producing high-quality combed cotton yarns and polyester-cotton blended yarns, alongside trading activities in cloth and ready-made garments.[9] These core activities form the backbone of its business, emphasizing efficient production processes that meet international benchmarks.[2] As a pioneer in South India's textile industry, Lakshmi Mills has operated for over 100 years, significantly contributing to Coimbatore's reputation as the "Manchester of South India" through its longstanding presence and influence on regional textile development.[1] The company's enduring role has helped establish Coimbatore as a key hub for textile manufacturing, fostering innovation and employment in the sector, with over 2,000 employees.[1][8] This significance extends to its commitment to sustainability and quality, aligning with global standards to support the broader Indian textile ecosystem.[2] The company's operations are divided into two main segments: textiles, which dominate revenue generation, and ancillary rental services from property leasing.[9] In FY2025, the textiles segment accounted for approximately 91.8% of total revenue from operations at Rs. 24,174.81 lakhs, while rental services contributed about 8.8% at Rs. 2,303.47 lakhs, with total revenue from operations reaching Rs. 26,316.27 lakhs.[9] This structure highlights the primacy of textiles while providing diversification through stable rental income.[9] Lakshmi Mills maintains a robust global reach, with exports constituting about 12.7% of total revenue from operations at Rs. 3,340.78 lakhs in FY2025, targeting international markets through adherence to stringent quality certifications and sustainable practices.[9] Domestic sales, at Rs. 23,612.72 lakhs, complement this by serving local demand, ensuring a balanced portfolio that underscores the company's adaptability in the competitive textile landscape.[9]History
Establishment and Early Years
The Lakshmi Mills Company Limited was incorporated on April 1, 1910, as a public limited company, with a registered capital of one lakh rupees and the Corporate Identification Number L17111TZ1910PLC000093. Promoted by the entrepreneur G. Kuppuswamy Naidu, the company was established in Coimbatore, Tamil Nadu, amid the colonial textile landscape where British policies prioritized the export of raw Indian cotton to UK mills while imposing tariffs that hindered local manufacturing. The initial focus was on cotton ginning and pressing, processing raw cotton into lint for trading and further use in the nascent Indian textile sector.[10][6][11] Early operations centered on ginning facilities at Papanaickenpalayam, sourcing raw cotton from local farms in the Coimbatore region, which was a key cotton-growing area but reliant on traditional agriculture prone to yield fluctuations. Machinery for these operations was imported from Britain, navigating colonial trade dynamics that allowed equipment imports but restricted technology transfers to protect British industrial dominance. Basic spinning activities were introduced gradually as the company built capacity, though full-scale production awaited later expansions; this phase emphasized foundational strategies like securing local supply chains to reduce dependence on imported yarn. Labor recruitment drew from rural migrants, but the workforce faced rudimentary conditions typical of early 20th-century mills.[6][1][12] The pre-independence era presented significant challenges, including raw material sourcing inconsistencies from fragmented local cotton farms, where short-staple varieties dominated and quality varied seasonally, exacerbating costs amid fluctuating colonial export demands. Labor issues emerged prominently, with workers enduring long hours, low wages, and poor facilities, culminating in early strikes such as the 1937 action at Lakshmi Mills demanding better pay and conditions. Competition from cheap Manchester textiles was intensified by discriminatory duties under British rule, where British goods entered India with minimal import duties (around 5%), while Indian-manufactured goods were subject to countervailing excise duties to offset any protection.[13][14][15] A pivotal development came with the first major investment in the early 1930s, when the company proposed and approved the construction of a spinning mill featuring 11,600 spindles at its Coimbatore unit, raising authorized capital from one lakh to six lakhs rupees to fund the project. Operations commenced in 1938, marking the transition from ginning to integrated spinning and laying the groundwork for weaving capabilities amid the swadeshi movement's push for self-reliance. This expansion underscored foundational strategies of modernization within colonial constraints, positioning Lakshmi as a key player in South India's textile growth.[6][16]Expansion and Milestones
Following India's independence in 1947, Lakshmi Mills underwent significant post-independence growth, particularly in the 1950s and 1960s, as the company adapted to national self-reliance initiatives by incorporating Indian-made machinery and expanding production capacity through government incentives aimed at industrial development, expanding under India's First and Second Five-Year Plans (1951-1961), which provided incentives for industrial growth including textiles. By 1950, the Coimbatore unit installed 194 looms to commence weaving operations, marking an early step in diversification beyond spinning.[6] In 1954, the construction of the Kovilpatti 'B' Mill increased the total spindle capacity to 50,000, effectively doubling output and leveraging incentives under India's Five-Year Plans to promote textile modernization.[6] This expansion continued with the 1959 establishment of a modern spinning mill at the Palladam branch, adding 22,000 spindles and focusing on efficient, indigenous technology.[6] The formation of affiliated entity Lakshmi Machine Works in 1962 further supported this shift by supplying Indian-manufactured machinery through partnerships like the one with Rieter of Switzerland.[6] Key milestones in subsequent decades highlighted the company's technological advancements and quality commitments. The 1990s saw the attainment of ISO 9001 certifications across its four spinning units, ensuring adherence to international quality standards and enhancing operational reliability.[17] The centenary celebrations in 2010 commemorated the company's founding in 1910, featuring events that honored its legacy and contributions to India's textile sector under leaders like G. Kuppuswamy Naidu.[1] Entering the 2000s, Lakshmi Mills prioritized sustainability and global competitiveness following India's 1991 economic liberalization, which spurred export growth by reducing trade barriers and opening international markets. The company shifted toward energy-efficient processes, such as installing energy-efficient motors in pneumafil fans and overhead cleaners, to lower operational costs and environmental impact.[18] This era also saw increased exports of combed cotton and blended yarns, capitalizing on post-liberalization opportunities to expand beyond domestic sales.[19]Business Operations
Products and Manufacturing
Lakshmi Mills produces a diverse range of textile products, primarily focusing on yarns and fabrics tailored for apparel, home textiles, uniforms, and medical applications. The company's yarn portfolio includes single and doubled 100% cotton yarns in counts ranging from 30s to 120s Ne, alongside synthetic blends such as polyester-cotton (PC) in 65:35 ratios, chief value cotton (CVC), modal-cotton, Tencel-cotton, and X-Static-cotton blends for antimicrobial properties. Fabrics encompass woven varieties like grey 100% cotton (in twill, canvas, sateen weaves), PC-blended fabrics with low shrinkage and pilling resistance, cotton-Lycra stretch fabrics for sportswear and lingerie, and processed options including bleached, mercerized, and dyed fabrics customized for apparel and home use. Additionally, the company manufactures ready-made garments, specializing in hospital uniforms such as patient gowns, staff coats, pyjamas, and disposable items like bedspreads and pillow covers treated for hygiene.[20][21][22] The manufacturing processes emphasize vertical integration, encompassing spinning, weaving, dyeing, and finishing to control quality from raw cotton processing to final products. Spinning operations utilize ring spinning technology with advanced machinery, including LMW blowrooms, carding, draw frames, ring frames, and Murata/Savio autoconers, producing approximately 23 tons of yarn per day across 144,432 spindles as of 2024-25. Weaving involves automated airjet and Sulzer looms for constructing plain, twill, sateen, and specialty weaves, while dyeing and finishing processes employ hydrogen peroxide bleaching, mercerization for enhanced luster and strength, and eco-friendly dyeing techniques for a wide color palette in bed linens (180–600 thread count) and uniforms. This integrated approach extends to ginning and preliminary processing, enabling efficient production of blended yarns for both apparel (e.g., stretch Lycra fabrics) and industrial uses (e.g., durable uniforms).[23][20][4][9] Quality standards are upheld through adherence to international quality management systems, with both spinning units previously certified to ISO 9001 (valid until 2024) and meeting USTER 10% world mill standards for yarn evenness and imperfections. Contamination-free options use certified Egyptian and Supima cottons. Automated looms and compact spindles (over 52,000 installed) enhance precision and reduce waste, supporting eco-friendly production. The company has held certifications such as OEKO-TEX Standard 100 (until 2022) and Global Organic Textile Standard (GOTS) for organic cotton processing.[24][23] Innovations center on developing advanced blended yarns and specialty textiles, such as X-Static silver-infused yarns that mechanically eliminate pathogens without leaching chemicals, enduring 75–100 washes for medical and hygienic applications. These blends cater to apparel needs with soft, breathable modal-Tencel options and industrial demands through robust, antimicrobial fabrics for uniforms and hospital settings. The annual production capacity supports scalable output, with ongoing R&D ensuring alignment with global sustainability trends. Post-2023-24 spindle expansion, updated production figures are not specified in recent reports.[21][20][23]Facilities and Technology
Lakshmi Mills maintains its primary manufacturing infrastructure in Coimbatore, Tamil Nadu, which serves as the historic hub for its operations, complemented by specialized spinning units in Palladam (established 1959) and Kovilpatti (established 1941), both located in Tamil Nadu. As of 2024-25, the combined spindle capacity across these sites is 144,432 ring spindles, following an expansion from 133,392 in 2023-24 per company reports (though some independent ratings list 133,392 as of March 2025). The overall infrastructure underscores the company's focus on integrated textile processing in the region.[23][4][9] Technological advancements at these facilities include the adoption of state-of-the-art machinery from reputable suppliers, such as Lakshmi Machine Works for blowroom, carding, draw frame, speed frame, and ring frame equipment, Murata and Savio for autoconers, and Caipo for slub yarn production. In 2023-24, the company expanded its spindle capacity from 133,000 to 144,432 ring spindles to boost efficiency and output adaptability. Additional upgrades emphasize energy optimization, incorporating energy-efficient nylon fans, LED street lighting, and modified pulley diameters to lower operational power usage.[23][4] Sustainability efforts feature the integration of renewable energy, with a 2024 agreement for 8.5 MW of solar power supply from Torrent Power via open access, directed toward the production units to cut costs and emissions in this energy-intensive sector. Both the Palladam and Kovilpatti facilities previously held ISO 9001 certification until 2024, ensuring adherence to international quality management standards in manufacturing processes.[25][23]Lakshmi Group
Group Formation and Diversification
The Lakshmi Group originated from the efforts of G. Kuppuswamy Naidu and his family, who established Lakshmi Mills in 1910 as one of India's early indigenous textile enterprises amid British colonial rule.[1] This foundational company in cotton ginning and textiles laid the groundwork for the group's evolution into a diversified conglomerate centered in Coimbatore, Tamil Nadu. By the 1960s, under subsequent family leadership including G.K. Devarajulu, the group began diversifying beyond core textile production to address supply chain dependencies and promote self-reliance in the industry.[1][26] A pivotal diversification occurred in 1962 with the formation of a joint venture between the Lakshmi Group and Switzerland's Rieter Machine Works, marking the entry into textile machinery manufacturing.[26] This move focused on producing spinning machinery, enabling the group to supply advanced equipment to Indian mills and reducing reliance on imports. Post-1970s, the group further expanded into engineering services and sales agencies for industrial equipment, building on initial machinery successes to broaden its industrial footprint.[26] The strategic rationale for these shifts emphasized vertical integration, allowing the group to control key elements of the textile supply chain from raw materials to machinery production.[26] This approach aligned with India's post-independence industrialization policies, particularly import substitution initiatives that encouraged domestic manufacturing to foster economic self-sufficiency in the 1960s and beyond.[26] The Lakshmi Group maintains a family-controlled structure with cross-holdings among its entities, exemplified by Lakshmi Mills' ownership of approximately 4.54% stake in its key machinery affiliate as of 2025.[16] Textiles remain the foundational base, while machinery manufacturing has emerged as the primary growth driver, contributing significantly to the group's overall scale through exports and domestic supply.[26]Key Affiliated Companies
Lakshmi Machine Works (LMW), established in 1962, stands as one of the world's leading manufacturers of textile spinning machinery, producing a complete range of equipment for the industry and holding a dominant 60% market share in India's domestic sector.[27][28] As a key affiliate of the Lakshmi Group, LMW supplies advanced machinery, such as high-speed spindles, directly to Lakshmi Mills' production facilities, enabling technological upgrades and efficiency improvements in yarn manufacturing.[29] Other prominent affiliates include Lakshmi Engineering and Warehousing, which provides engineering services, warehousing rentals, and specializes in spares for weaving and knitting machinery, supporting the group's textile and machinery operations.[30] Super Sales India focuses on yarn trading and distribution, complementing Lakshmi Mills' core production by facilitating market access and supply chain integration for textile products.[30] Rajshree Sugars & Chemicals represents diversification into the agro-processing sector through family ties, producing sugar, alcohol, and power while sharing directorships and ownership with the Pathy family.[31] These companies are interconnected via shared family ownership from the founding promoters, primarily the Pathy family, which ensures coordinated strategic decisions and resource sharing across the group.[32] Technology transfers, such as LMW's spindle systems integrated into Lakshmi Mills' plants, exemplify operational synergies that enhance overall group competitiveness.[27] The Lakshmi Group comprises approximately 5-6 major companies, spanning textiles, machinery, engineering, and agro-industries through affiliates, with a combined workforce of approximately 5,000 employees as of 2025 and a collective market capitalization in the tens of billions of Indian rupees (around ₹18,000 crore), driven largely by LMW's valuation.[30][33][34][35][36][37][38][39]Leadership
Founders and Key Promoters
The Lakshmi Mills Company Limited was founded by G. Kuppuswamy Naidu, a pioneering entrepreneur born in 1884 in Coimbatore, who established a small ginning factory in Naranapuram in 1907 amid the colonial economy's dominance in textiles.[6] In 1910, he incorporated the company as a limited entity focused on yarn and cloth manufacturing, promoting local industry by leveraging Coimbatore's emerging cotton hub status despite British import controls.[1] Naidu's vision emphasized self-reliance, expanding operations to include spinning and weaving units that laid the foundation for the region's textile growth.[40] Following Naidu's death in 1942, family succession ensured continuity, with his sons G.K. Devarajulu and G.K. Sundaram taking key promoter roles in the 1950s and 1960s.[41] Devarajulu, the elder son born in 1911, drove modernization by introducing advanced machinery and founding Lakshmi Machine Works in 1974 to support textile equipment needs. Sundaram, who joined the company in 1938, managed daily operations and expanded into diversified ventures, maintaining family oversight during post-independence challenges.[42] Grandsons, including those from Devarajulu's line such as Dr. D. Jayavarthanavelu, further propelled growth in the 1970s by innovating machinery production, solidifying the group's industrial footprint.[41] The founders' legacy extends to philanthropy, particularly in education and healthcare in Coimbatore, through the G. Kuppuswamy Naidu Charity Trust established in 1948 by family members to honor his vision.[43] The trust supports institutions like the G. Kuppuswamy Naidu Memorial Hospital, providing medical relief since 1951, and educational facilities such as Mani Higher Secondary School and G. Venkataswamy Naidu College, emphasizing accessible learning.[44] Core values of innovation, as seen in technology adoptions, and employee welfare, including housing and training programs, were instilled by Naidu and perpetuated across generations.[1] Under family control, the company transitioned from its initial sole proprietorship ginning operations in 1907 to a public limited company upon incorporation in 1910, enabling broader capital access while retaining promoter dominance.[6] This structure has persisted, with family members holding key stakes amid listings on the Bombay Stock Exchange.[45]Current Directors and Governance
The board of directors of The Lakshmi Mills Company Limited comprises eight members as of November 2025, including two executive directors, two non-executive non-independent directors, and four independent directors, ensuring a balanced composition in line with regulatory requirements.[9][46] Sundaram Pathy serves as Chairman and Managing Director, a position he has held since 1995, bringing over four decades of experience in business management and oversight of textile operations within the Lakshmi Group.[9][47] Aditya Krishna Pathy, son of Sundaram Pathy and a fourth-generation family member in the company's leadership lineage, acts as Deputy Managing Director since 2009, with a focus on operational efficiency; he holds a degree in business and management from the University of Exeter and founded Rajshree Biosolutions LLP.[9][47] R. Santharam functions as Vice Chairman in a non-executive capacity since 2002, providing strategic guidance.[9] Sanjay Jayavarthanavelu, a non-executive non-independent director since 2010, contributes independent expertise from his role as Chairman and Managing Director of Lakshmi Machine Works Limited, where he has led since 1993; he possesses an MBA from Philadelphia University and serves on national textiles committees.[9][48] The independent directors include K. Murali Mohan, appointed in 2024, who chairs the audit committee with prior experience in corporate governance; Ashwin Chandran and R. Varadarajan, both appointed in 2024, bringing financial and legal acumen respectively; and Priya Bhansali, appointed as an additional independent director in September 2025 and confirmed at the annual general meeting, enhancing board diversity as a woman director with expertise in business advisory.[9][46] Smt. Suguna Ravichandran, a chartered accountant with over 15 years of audit experience, completed her second term as an independent director on September 2, 2025.[47][49] Governance practices emphasize transparency and accountability, with the board holding six meetings in the fiscal year 2024-25 to oversee strategic decisions.[9] Key committees include the Audit Committee, chaired by K. Murali Mohan and comprising R. Santharam, R. Varadarajan, and Suguna Ravichandran (prior to her term end), which met four times to review financial reporting and internal controls; the Nomination and Remuneration Committee, led by Ashwin Chandran with R. Varadarajan and Sanjay Jayavarthanavelu as members, focusing on director appointments and compensation policies; the Stakeholders Relationship Committee, chaired by R. Santharam; and the Corporate Social Responsibility Committee, headed by Sundaram Pathy.[9] The company maintains a vigil mechanism through its Whistle Blower Policy, ensuring protection for reporting unethical practices.[9] The Lakshmi Mills Company Limited complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Companies Act, 2013, including provisions for related party transactions under Sections 177 and 188, with secretarial audits confirming adherence.[9] Board diversity is promoted through the inclusion of Priya Bhansali as a woman director since September 2025, aligning with gender balance goals, while independent directors constitute half the board to uphold impartial oversight.[9][46] ESG policies integrate sustainability efforts, such as solar and wind energy adoption for environmental responsibility, alongside CSR initiatives in education and employee welfare, governed by a dedicated policy despite no mandatory expenditure in 2024-25 due to profit thresholds.[9][50]| Director Name | Role | Appointment Year |
|---|---|---|
| Sundaram Pathy | Chairman & Managing Director | 1995 |
| Aditya Krishna Pathy | Deputy Managing Director | 2009 |
| R. Santharam | Vice Chairman (Non-Executive) | 2002 |
| Sanjay Jayavarthanavelu | Non-Executive Non-Independent Director | 2010 |
| K. Murali Mohan | Non-Executive Independent Director | 2024 |
| Ashwin Chandran | Non-Executive Independent Director | 2024 |
| R. Varadarajan | Non-Executive Independent Director | 2024 |
| Priya Bhansali | Non-Executive Independent Director | 2025 |