In the 1920s peasant and teachers organizations were strong in this village and there was widespread support for the freedom movement. As part of the independence struggle, a boycott of foreign clothes was conducted in 1930, its leaders being AKG, AK Sankaran Nambiar, Kacherikkandi Chathukkutty and Thattari Kunhiraman. In 1938 seven thousand peasants marched from Pinarayi to Kottayam kovilakam for reducing varam and pattam (rent paid by peasants to landlords). The population of Pinarayi during that time was around 10,000. This was considered as the first instance of unified mass movement against landlordism. NE Balaram, AKG, Kundancheri Kunhiraman Master, Pandyala Gopalan Master, Pinarayi Krishnan Master and TV Govindan Nair were the leaders of this movement. Pinarayi villages was a part of Malabar district in Madras Presidency.

The first meeting of the Communist Party of India was held at a place called Parapram in Pinarayi and Communist Party is formally constituted in this meeting. Mr. Pinarayi Vijayan, the former State Secretary of Communist Party of India (Marxist) and the Chief Minister (elected in May 2016), is a native of this village, and he is usually simply referred to by his village name.

The founder President of Pinarayi Industrial Co-operative Society Ltd. (S(ind) No. C 81) is Mr. Pinarayi Vijayan, the society is registered under Co-operative Societies Act in 1979 and started its functioning in 1982. The first unit of the society was “The Pinarayi Tile and Sawmill Workers’ Industrial Co-operative Society”, which was formed by taking over an existing company “Tellichery Tile Factory”. It was previously owned by Shri. Samual Aron and later transferred the ownership to some other party, due to its mismanagement, the government as a part of revenue recovery, put the factory on auction and employees of the factory formed a society, took over the reigns as “The Pinarayi Tile and Sawmill Workers’ Industrial Co-operative Society”. The society imported machines from Belgium and the well experienced hardworking employees made the saw-mill a most reputed one in Kannur district.

The infrastructure extended in 16 acres of land, availability of enough water source, raw materials, high tension electric lines and labour force lead the society to think about establishing more industrial units in this area and resulting in the formation of the Pole Casting Unit in 1992, executed an agreement with KSEB to supply 7M, 8M & 9M PSC Poles on long term basis to its divisions at Kannur, Kozhikode, Vatakara and Malappuram. At that time Shri. C V Padmarajan was the Minister of Electricity. A short-term loan of 50 Lakh granted by State Co-operative Bank and a cash credit loan allowed by District Co-operative Bank enabled the smooth functioning of the society and settled the loan in-time.

A Stone Crusher Unit was started as part of the aforesaid project to supply jelly needed for the concrete pole unit. In 1994, a Hollow Brick and Interlock Unit started functioning using the by-products of the said crusher unit and afterwards started producing designer tiles and Interlocks. The society started a Wooden Furniture Unit for making all sorts of wooden furniture by using the wood available at its Saw Mill. A Roof Tile manufacturing unit is also started by using Italian machinery by a term-loan of 1.68 Crore from District Co-operative Bank. As part of diversification, PICOS have started civil works in 2004 and subsequently accredited by Local Self Government Department and Finance Department of Goverment of Kerala. Which is also having 'A' Class lisence from Kerala Public Works Department.

The effective administration, the large scale production, appropriate marketing methods, talented employees, support of the public and high quality products enabled the society to extend the range of its functional activities. It was decided to form 5 primary societies and a central society during 1999, in terms of Kerala Co-operative Societies Act 1969 under the administrative control of the Department of Industries and Commerce, Government of Kerala. Gradually, the “Pinarayi Tile and Sawmill Workers’ Industrial Co-operative Society” was termed as the Pinarayi Industrial Co-operative Society (PICOS). As a part of its social commitment, the PICOS have facilitated infrastructure for functioning an Industrial Training Institute at Pinarayi under the control of Government of Kerala.