The Alleppey Co-operative Spinning Mills Ltd (ACSM) registered on 21 July 1981 with number DI/793/81 and was commissioned on 30 October 1999 with a capacity of 6008spindles. The Government acquired 7.9 hectors i.e., 19.5 acres of land in Pathiyoor Village, Kayamkulam in Alleppey district with an estimated value of 26.9 lakhs rupees. The project report was prepared by All India Federation of Co-operative Spinning Mills Ltd. The total cost of the project was Rs.1136 lakhs.

The Mill was set up by the All India Federation of Co-operative Spinning Mills Ltd, Mumbai. The total estimated cost requirement for the mill was 1136 lakhs as per the SITRA standard. The initial membership of the Society was 34 members and registered as a public Ltd company in the Co-operative sector and registered under Kerala co-operative Society Act 1969. The Board of Directors shall compete to delegate the power and duties of the Chairman, General Manager or any other officer the mill for efficient management of the business of the mill.