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Kerala State Textile Corporation Ltd (KSTC) was incorporated in 1972 as a fully owned subsidiary of Kerala State Industrial Development Corporation Ltd (KSIDC) with the main objective of setting up/running textile mills in the State of Kerala. The Corporation was looking after the affairs of four private textile mills namely Alagappa Textiles Ltd (Kochi), Parvathy Mills Ltd (Kollam), Vijayamohiny Mills Ltd (Thiruvananthapuram) and Kerala Lakshmi Mills Ltd (Thrissur) as controller and custodian authorised by Government of Kerala till 1975, since they were transferred to National Textiles Corporation (NTC). In 1973, KSTC took over the management of Trivandrum Spinning Mills Ltd (Balaramapuram) and the Bleaching & Calendaring Plant (Balaramapuram) for a period of five years till a separate Board was constituted for TSM.

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