The Aditya Birla Group company plans to significantly increase its lyocell fibre production over the next five years, strengthening its presence in the global sustainable textiles market.
Grasim Industries has approved a fresh investment of ₹3,094 crore to expand its lyocell fibre manufacturing capacity at its Harihar facility in Karnataka, as demand for sustainable textile materials continues to grow worldwide.
The company said the investment will fund the second phase of its lyocell expansion project, adding 110,000 tonnes per annum (TPA) of capacity through two production lines of 55,000 TPA each. The first line is scheduled to begin operations in 2028, while the second is expected to be commissioned by 2030.
The latest expansion follows the ongoing construction of a 55,000 TPA lyocell plant at the same location, which is expected to become operational by mid-2027. Once both phases are completed, Grasim’s total lyocell production capacity will approach 210,000 TPA, placing the company among the world’s largest producers of the fibre.
According to the company, the additional investment is part of a broader strategy to strengthen its portfolio of sustainable and specialty fibres. The expansion is also expected to push Grasim’s overall cellulosic fibre capacity beyond one million tonnes annually by 2030.
Aditya Birla Group Chairman Kumar Mangalam Birla said the investment reflects confidence in the long-term growth potential of the Indian market and supports the country’s manufacturing ambitions. He noted that the project would help enhance India’s competitiveness within the global textile industry while expanding Grasim’s advanced fibre capabilities.
Vadiraj Kulkarni, Business Head of Grasim Pulp & Fibre, said the capacity addition would increase the company’s presence in the higher-value lyocell segment and support growing demand for fibres with a lower environmental footprint.
Lyocell is a cellulosic fibre used in apparel, home furnishings and technical textile applications. Produced through a closed-loop manufacturing process, it is widely regarded as a more sustainable alternative within the man-made cellulosic fibre category.
Grasim also expects specialty products—including lyocell, modal, dope-dyed and recycled fibres—to account for 35% of its portfolio by 2030.
Source – Grasim to Boost Sustainable Fibre Production with New Investment
