Grasim Industries, the flagship company of the Aditya Birla Group, has committed INR 3,094 crore to a Phase II Lyocell capacity expansion at its Harihar plant in Karnataka. The investment covers two production lines of 55,000 tonnes per annum each, with the first line expected to be commissioned by 2028 and the second by 2030.
The Phase II expansion will complement a Phase I Lyocell plant of 55,000 TPA currently under construction at the same location, which is expected to be commissioned by mid-2027. Upon completion of both phases, the company’s total Lyocell capacity will reach approximately 210,000 TPA, which the company said would position it among the largest Lyocell producers globally.
The investment will also raise Grasim’s overall cellulosic fibre capacity beyond one million tonnes per annum. The company said its specialty product portfolio – encompassing Lyocell, Modal, dope-dyed, and recycled fibres – is targeted to account for 35% of production by 2030.
Lyocell is produced through a closed-loop manufacturing process and is used in apparel, home textiles, and technical textile applications. According to the company, the fiber offers durability, breathability, comfort, and a lower environmental footprint compared to conventional man-made fibres.
“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,” said Kumar Mangalam Birla, chairman, Aditya Birla Group.
