This expansion will consist of two lines of 55,000 TPA each, with first line expected to be commissioned by 2028
Grasim Industries, the flagship company of the Aditya Birla Group and a player in cellulosic fibres, has notified an investment of Rs 3,094 crore for the second phase of its Lyocell plant of 1,10,000 tonne per annum (TPA) at Harihar, Karnataka.
This expansion will consist of two lines of 55,000 TPA each. The first line is expected to be commissioned by 2028, and the second line is expected to be commissioned by 2030. This additional capacity will complement the phase one Lyocell plant of 55,000 TPA currently under construction at Harihar, which is expected to be commissioned by mid-2027.
“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 one million tonne per annum, reinforcing its position as a global leader in sustainable Man-Made Cellulosic Fibres (MMCF),” stated Kumar Mangalam Birla, Chairman, Aditya Birla Group.
The company said in an exchange filing that upon completion, Grasim’s total Lyocell capacity will reach nearly 2,10,000 TPA, making it one of the largest Lyocell producers globally. Lyocell is a versatile, next-generation fibre widely used across apparel, home textiles, and technical textile applications.
The expansion would strengthen the company’s specialty product portfolio and solidify its position as a key player in the global sustainable fibre industry. Grasim’s specialty portfolio share (including lyocell, modal, dope-dyed and recycled fibres) would increase to 35 per cent by 2030, the company added.
“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,” said Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre.
