Sikh historian Giani has recorded the details of setting up of Barnala in the annals of Khalsa in this manner that in the year 1775 Baba Ala Singh after offering Bhadaur (set up by King Padhar Sain) to his brother Duna Singh came to Barnala region which was lying aloof at that time.

Some are of the view, Vaaran being a region because of frequent storms was at that time also called Varna.

Baba Ala Singh left Bhadaur with his elder brother (hometown of Patiala State) and settled at Barnala and conquered many areas with the help of his brothers the Bhadaur Sardars.

The group operates in five major business segments: Yarn, Terry Towels, Paper, Chemicals and Captive Power.

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Barnala mainly acts as a market place for surrounding villages, including Hamidi, and is also emerging as a trading town.