Chhabra Spinners was incorporated under the Companies Act 1956 on September 20, 1989 as a Private Limited Company and received the certificate of Commencement on May 06, 1991. It was converted into a public Limited Company by passing a special Resolution in its Extra Ordinary General Meeting held on 20-1-95 and obtained certificate on January 31, 1995.

The company was established with a view to establish a unit for spinning of cotton yarn at Dhamnod.  The Company implemented a project for spinning of cotton yarn of coarse count by installing Imported Open End spinning machines of 192 rotors each with a total outlay of Rs 2.43 crore which was financed by MPAVN and MPFC. Term Loans of Rs1.46 crore were availed for the project. The construction work for the unit was started in May, 1990 and the unit commenced production in April, 1991.

 The Company planned an expansion scheme in 1993-94 which envisaged installation of 3840 spindles and the necessary balancing machinery in the Preparatory Section. The Cost of the Expansion scheme was Rs 1.60 crore and the same was financed by way of a Term Loan of Rs 90.00 lakh by MPFC. The scheme was fully implemented by June, 1994.

Again in 1994-95, the company envisaged the expansion of its capacity, in two phases. In the first phase, which became operational partially in April 1995, it installed additional 6048 spindles, to raise the total capacity to around 10,000 spindles. In the second phase, it installed two autoconers and 2520 additional spindles.