The central society and 18 primary societies were sponsored by the Government of Kerala to rehabilitate large number of beedi workers when private manufacturers from outside the state had closed down their factories in kannur District abruptly, as the government of Kerala decided to implement the provisions of "Beedi & Cigar Workers' Act 1966" in the state with effect from October 1968. Government decided to organize the workers on co-operative basis. The Central Society was to procure raw materials in bulk and also to mobilize financial resources. Beedies were to be manufactured by the primaries, all under one brand. The societies were formally inaugurated on the 15th of February 1969. The Central society acquired 1.26 acres of land with a substantial building at Payyambalam.

The Kerala Dinesh Beedi Workers Central Co-op Society manufactures 60 lakhs beedi through its 18 primary societies which includes 8950 workers. Its monthly production of Beedi is about 15 crores and annual production being 180 crores. We pay Rupees 1 Lakh as Excise Duty per day. Wages Distributed is 25 Crores per annum. Our market mainly covers Kerala, Tamil Nadu, Karnataka and other parts of south India. Sound Economical and financial management and efficient marketing have opened the doors to real improvements in the living and working conditions of our members.