Grasim Goes Big: A ₹3,094 Crore Bet on the Future of Lyocell

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

The Phase II expansion will add 1.10 lakh tonnes per annum (tpa) of capacity through two production lines of 55,000 tpa each. The first line is expected to be operational by 2028, while the second is scheduled for commissioning by 2030.

The company stated that the project will be financed through a mix of debt and internal accruals, supporting a balanced capital structure for the expansion.

This development builds on Grasim’s ongoing Phase I Lyocell project at the same location, which is currently under construction. The Phase I facility, with a capacity of 55,000 tpa, is expected to be commissioned by mid-2027.

With this investment, Grasim aims to strengthen its position in the fast-growing sustainable fibre segment, aligning with rising global demand for environmentally friendly textile materials, particularly Lyocell, in the international apparel and textile industry.

News by Rahul Yelligetti.