"The Tamil Nadu based company's subsidiary Abirami Amman Mills Pvt Ltd has entered into a memorandum of understanding with Tamil Nadu Government for setting up of a textile project near Dindigul in Tamil Nadu," Bannari Amman Spinning Mills said in a BSE filing.
However, the company did not disclose the details of the investment proposed or the capacity of the plant.
The company had recently promoted a wholly-owned subsidiary Abirami Amman Mills Pvt Ltd to implement the new projects in future.
The spinning division is in Dindigul while the weaving division is in Coimbatore.
The company has a technical textile division comprising of coating, flocking and lamination units, a company website said.
Shares of the company ended flat at Rs 105 apiece on the BSE.