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What is the story about?
Grasim Industries Ltd on June 8 announced a fresh investment of ₹3,094 crore to set up phase II of its lyocell manufacturing capacity at Harihar, Karnataka.
The expansion will add 110,000 tonnes per annum (TPA) of lyocell capacity through two production lines of 55,000 TPA each. The first line is expected to be commissioned by 2028, while the second is scheduled for commissioning by 2030.
Lyocell is a semi-synthetic fabric made from the pulp of wood chips and is seen as an eco-friendly alternative to cotton. Tencel is one of the better-known brands of lyocell.
The new capacity will be added to the phase I lyocell plant of 55,000 TPA currently under construction at Harihar, which is expected to be commissioned by mid-2027. Upon completion of both phases, Grasim's total lyocell capacity will reach nearly 210,000 TPA.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “It is a vote of confidence in the scale and promise of the Indian market, aligns closely with the aspirations of Make in India, and will help position India as a more competitive and resilient force in the global textile industry.”
The company said the investment would take its overall cellulosic fibres capacity beyond one million TPA by 2030 and increase the share of specialty products — including lyocell, modal, dope-dyed and recycled fibres — to 35%.
Lyocell is used across apparel, home textiles and technical textile applications and is manufactured through a closed-loop production process.
Grasim said the expansion would strengthen its specialty product portfolio and its position in the sustainable fibre segment.
Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre, 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."
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He added that lyocell enhances the company’s product mix, supports premium applications, and aligns with the focus on delivering differentiated, sustainable solutions to global markets.
Grasim Industries, a Aditya Birla Group company, shares closed at ₹3,060.30 on the NSE on June 8, down 0.89%, or ₹27.40.
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The expansion will add 110,000 tonnes per annum (TPA) of lyocell capacity through two production lines of 55,000 TPA each. The first line is expected to be commissioned by 2028, while the second is scheduled for commissioning by 2030.
Lyocell is a semi-synthetic fabric made from the pulp of wood chips and is seen as an eco-friendly alternative to cotton. Tencel is one of the better-known brands of lyocell.
The new capacity will be added to the phase I lyocell plant of 55,000 TPA currently under construction at Harihar, which is expected to be commissioned by mid-2027. Upon completion of both phases, Grasim's total lyocell capacity will reach nearly 210,000 TPA.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “It is a vote of confidence in the scale and promise of the Indian market, aligns closely with the aspirations of Make in India, and will help position India as a more competitive and resilient force in the global textile industry.”
The company said the investment would take its overall cellulosic fibres capacity beyond one million TPA by 2030 and increase the share of specialty products — including lyocell, modal, dope-dyed and recycled fibres — to 35%.
Lyocell is used across apparel, home textiles and technical textile applications and is manufactured through a closed-loop production process.
Grasim said the expansion would strengthen its specialty product portfolio and its position in the sustainable fibre segment.
Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre, 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."
ALSO READ | Rajesh Exports shares hit lower circuit for third day, decline 14% since Sebi action
He added that lyocell enhances the company’s product mix, supports premium applications, and aligns with the focus on delivering differentiated, sustainable solutions to global markets.
Grasim Industries, a Aditya Birla Group company, shares closed at ₹3,060.30 on the NSE on June 8, down 0.89%, or ₹27.40.
ALSO READ | JSW Energy moves to make key wind equipment in-house
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