Grasim Industries To Invest Rs 3,094 Crore In Lyocell Capacity Expansion
Grasim Industries Ltd., the flagship company of the Aditya Birla Group and a global leader in cellulosic fibres, has announced a fresh investment of Rs 3,094 crore to expand its Lyocell fibre capacity at Harihar, Karnataka.
The investment will fund Phase II of the company’s Lyocell expansion project, adding 110,000 tonnes per annum (TPA) of capacity through two production lines of 55,000 TPA each. The first line is expected to be commissioned by 2028, followed by the second line by 2030.
The new investment complements Grasim’s Phase I Lyocell project of 55,000 TPA, currently under construction at Harihar and scheduled for commissioning by mid-2027.
Upon completion of both phases, Grasim’s total Lyocell capacity will reach nearly 210,000 TPA, positioning the company among the world’s largest Lyocell fibre producers. The expansion is also expected to take Grasim’s overall Cellulosic Fibre capacity beyond 1 million tonnes per annum by 2030.
Kumar Mangalam Birla, Chairman, Aditya Birla Group
Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “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.”
He added, “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).”
Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre
Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre, said, “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.”
Lyocell is a next-generation fibre widely used across apparel, home textiles and technical textile applications. Produced through a highly efficient closed-loop manufacturing process, the fibre offers durability, breathability, comfort and a lower environmental footprint.
The proposed expansion will further strengthen Grasim’s specialty fibre portfolio and reinforce its position in the global sustainable fibre market. The company expects the share of specialty products including Lyocell, Modal, dope-dyed and recycled fibres, to increase to 35% of its portfolio by 2030.
