3 days ago

Grasim to invest ₹3,000 crore to expand Lyocell capacity in Karnataka

Grasim Industries, the flagship company of the Aditya Birla Group, unveiled plans to invest ₹3,094 crore for the second phase of expansion of its Lyocell plant at Harihar in Karnataka.

Lyocell is a fibre used across apparel, home textiles, and technical textile applications. Grasim’s Specialty portfolio share (including Lyocell, Modal, Dope-dyed and Recycled fibres) is slated to rise to 35 per cent by 2030.

This expansion will consist of two lines of 55K TPA (150 tonne per day) each. The plant has a total capacity of 110,000 TPA, and the first line is expected to be commissioned by 2028, and the second line by 2030.

“The Aditya Birla Group has always demonstrated the willingness to invest ahead of the curve in sectors that will define India’s future competitiveness and economic resilience. This investment carries forward that legacy. It is a vote of confidence in the scale and promise of the Indian market, aligns closely with the aspirations of Make in India, and will help position India as a more competitive and resilient force in the global textile industry,” Kumar Mangalam Birla, Chairman, Aditya Birla Group, said.

“This 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. This fresh expansion will catapult Grasim’s overall Cellulosic Fibres capacity beyond 1 million tonnes per annum, reinforcing its position as a global leader in sustainable Man-Made Cellulosic Fibres (MMCF),” he added.

This additional capacity will complement the Phase-I Lyocell plant of 55K 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 210,000 TPA, making it one of the largest Lyocell producers globally.

“This expansion strengthens our position in the evolving MMCF landscape by scaling a high-value, future-ready fibre segment. By expanding Lyocell capacity, we are accelerating the shift towards high performance fibres with a lower environmental impact. Lyocell enhances our product mix, supports premium applications, and aligns with our focus on delivering differentiated, sustainable solutions to global markets,” Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre said.