Grasim Industries, an Aditya Birla Group company, will invest ₹3,094 crore to add 1.10 lakh tonne per annum capacity of Lyocell at Harihar in Karnataka.
The phase II expansion of Lyocell capacity will consist of two lines of 55,000 tpa each. The first line is expected to be commissioned by 2028 and the second line by 2030. The project will be funded through mix of debt and internal accurals.
This additional capacity will complement the phase I Lyocell plant of 55,000 tpa currently under construction at Harihar, which is expected to be commissioned by mid-2027.
Upon completion, Grasim’s total Lyocell capacity, will reach nearly 2.10 lakh tpa, making it one of the largest Lyocell producers globally.
Next-gen fibre
Lyocell is a versatile, next-generation fibre widely used across apparel, home textiles and technical textile applications. Manufactured through a highly efficient closed-loop process, Lyocell offers a compelling combination of durability, breathability, comfort, and lower environmental impact.
The expansion will strengthen the company’s speciality product portfolio and solidify its position as a key player in the global sustainable fibre industry. Grasim’s specialty portfolio share (including Lyocell, Modal, Dope-dyed and Recycled fibres) would increase to 35 per cent by 2030.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, said the group has always demonstrated the willingness to invest ahead of the curve in sectors that will define India’s future competitiveness and economic resilience.
The investment also marks another significant step in Grasim’s strategic expansion of advanced fibre capabilities, catering to the growing global demand for sustainable and high-performance textile materials, he said.
The fresh expansion will catapult Grasim’s overall cellulosic fibres capacity beyond one million tonnes per annum, reinforcing its position as a global leader in sustainable man-made cellulosic fibres, said Birla.
Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre, said the expansion strengthens the company’s position in the evolving MMCF landscape by scaling a high-value, future-ready fibre segment.
By expanding Lyocell capacity, the company will be accelerating the shift towards high performance fibres with a lower environmental impact, he said.
Lyocell enhances the company’s product mix, supports premium applications, and aligns with focus on delivering differentiated, sustainable solutions to global markets, he added.