The Vaigai Thread Processors, formerly J&P Coats, was started on 98 acres of land given on a 99-year lease by the government in 1952. In 1980, it merged with Madura Coats Limited and it was declared locked out in 1993 and did not function for the next five years and it was finally handed over to Vaigai Thread in 1996.
Vaigai Threads at Koratty, which which remained closed since January 23, 2013, following labour dispute, has taken a serious blow with the Karnataka High Court appointing a liquidator to take over the company and properties attached to it. Official liquidator Jayakumar from Karnataka visited the closed down unit in Koratty on Wednesday evening and took stock of the inventory in the company after pasting a court notice on its compound wall.
The state government on 4th July 2013 decided to take over the Vaigai Thread Processors Limited at Koratty, which remained closed since January 2013 following labour dispute, along with all the infrastructure facilities extended to it. The decision was taken at a meeting, held in Thiruvanthapuram, between Chief Minister Oommen Chandy, Revenue Minister Adoor Prakash, union leaders and company officials on the long drawn labour dispute in the company.