Khadi is a beloved child of our 'Father of our nation' which was found and nourished during 1920 as part of operation of freedom. It was started in tamilnadu during 1923 and was managed by Tamilnadu Congress committee under the Chairmanship of E.V.Ramasamy.
During 1925, the Akil Bharat Charka Sangh was formed, which took over the Khadi activity from Congress Committee. After Independence, the Akil Bharat Charka Sangh merged with the Akil Bharat Sarvo Seva Sangh.The Akil Bharat Sarvo Seva Sangh had accepted decentralization as a policy and major plan of extension for other activities.
As a part of this policy, the Khadi & Village Industries Commission activities in Tamilnadu were brought under a newly created institution called Tamilnadu Sarvodaya Sangh during 1958. Within a few years, Tamilnadu Sarvodaya Sangh also decentralized its activities into District and Block level institutions.
As a part of the decentralization of Tamilnadu Sarvodaya Sangh, Padiyur Sarvodaya Sangh was born in the year 1961 with an area of operation consisting of 8 revenue villages and a population of 24,000.The Khadi activities were started at Padiyur during 1940 under All India Spinners Association
When the sangh was decentralized from tamilnadu sarvodaya sangh during 1961,The padiyur sangh was formed and it had 3 branches and 18 workers producing Rs. 5 lakh worth of Khadi. Its growth spanning over 50 years, the Sangh has now grown into a large institution containing 15 Branches and 88 workers with a 10 crore turnover in Khadi and village industry activities.
The sangh has also established a small workshop, Non-edible oil, Soap unit, Village Leather unit, Neem oil Production unit, Agar batthi and Butter units. These village industrial units are situated in every branch of this Sangh for better performance.