New Delhi, Grasim Industries Ltd, the flagship company of the Aditya Birla Group, on Monday said it will invest Rs 3,094 crore on expansion of its Lyocell capacity at Harihar, Karnataka, under phase II.
The Board of Directors of Grasim Industries, a global leader in cellulosic fibres in a meeting on Monday, approved a capex of Rs 3,094 crore to expand Lyocell capacity at Harihar, Karnataka.
This will be financed through a "mix of internal accrual and borrowed funds."
It will support Grasim to participate in the growing global demand for sustainable and high-performance textile materials.
Lyocell is a semi-synthetic fibre widely used across apparel, home textiles, and technical textile applications.
Under this, Grasim will set up a 110K TPA (2 lines of 55K TPA) each, in which the first line is expected to be commissioned by 2028, and the second line by 2030.
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 210K TPA, making it one of the largest Lyocell producers globally," it said.
Commenting on the development Chairman Kumar Mangalam Birla said, Aditya Birla Group has consistently shown a commitment to investing in emerging sectors that are critical to strengthening India's long-term economic growth and global competitiveness.
This investment reflects that vision, underscores confidence in the vast potential of the Indian market, supports the objectives of the Make in India initiative, and is expected to enhance the country's position as a stronger and more resilient player in the global textile value chain, he 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," Birla added.
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.
