Grasim Approves ₹3,094 Crore Lyocell Expansion, Karnataka Capacity To Reach Nearly 2.10 Lakh TPA By 2030

Mumbai: Grasim Industries Ltd, the flagship company of the Aditya Birla Group, has approved an investment of Rs 3,094 crore to expand its Lyocell fibre manufacturing capacity at Harihar in Karnataka.

The company's Board of Directors cleared the proposal at its meeting held on Monday. The expansion will be funded through a mix of internal accruals and borrowed funds.

New Capacity To Be Added In Two Phases

Under Phase II of the project, Grasim will set up an additional Lyocell production capacity of 1.10 lakh tonnes per annum (TPA).

The expansion will consist of two manufacturing lines of 55,000 TPA each.

The first line is expected to become operational by 2028, while the second line is scheduled for commissioning by 2030.

This new capacity will be added to the company's existing Phase I Lyocell project of 55,000 TPA, which is currently under construction at the same location and is expected to start operations by mid-2027.

Total Capacity To Reach Nearly 2.10 Lakh TPA

After completion of all phases, Grasim's total Lyocell capacity will rise to nearly 2.10 lakh TPA.

The company said this will make it one of the largest Lyocell producers in the world.

Lyocell is a sustainable, semi-synthetic fibre used widely in apparel, home furnishing products and technical textiles. It is gaining popularity globally due to increasing demand for environmentally friendly textile materials.

Focus On Sustainable Growth

Aditya Birla Group Chairman Kumar Mangalam Birla said the investment reflects the group's commitment to supporting India's manufacturing growth and strengthening its position in global textile markets.

He added that the project aligns with the government's Make in India initiative and will help meet rising demand for sustainable and high-performance fibres worldwide.

The expansion will also take Grasim's overall cellulosic fibre capacity beyond one million tonnes per annum, further strengthening its leadership position in the global sustainable fibre industry.