Grasim Industries, the flagship company of the Aditya Birla Group, has announced a significant investment of ₹3,094 crore (approximately $370 million USD) to expand its Lyocell fibre manufacturing capacity. This strategic move, detailed in a recent company statement, will see the expansion take place at its facility in Harihar, Karnataka, underscoring a strong commitment to sustainable textile production.
Expanding Lyocell Production for Sustainable Textiles
The investment targets a Phase II expansion, which will add 110,000 tonnes per annum (TPA) of Lyocell capacity. This will be achieved through two new production lines, each contributing 55,000 TPA. The first line is projected to be operational by 2028, with the second slated for completion in 2030.
This new expansion complements an ongoing Phase I Lyocell plant, also under construction at Harihar, which is expected to be commissioned by mid-2027 with a capacity of 55,000 TPA. Upon the completion of all phases, Grasim's total Lyocell capacity will reach nearly 210,000 TPA, positioning the company as one of the largest Lyocell producers globally.
A Vote of Confidence in India's Manufacturing Future
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized that this investment reflects a strong belief in India's long-term manufacturing potential and economic resilience. He stated, “The Aditya Birla Group has always demonstrated the willingness to invest ahead of the curve in sectors that will define India's future competitiveness and economic resilience. This investment carries forward that legacy.”
Birla further highlighted that the project is a “vote of confidence in the scale and promise of the Indian market” and aligns seamlessly with the 'Make in India' initiative, aiming to bolster India's standing in the global textile industry. He added that this expansion is a crucial step in Grasim's strategy to enhance its advanced fibre capabilities, responding to the increasing global demand for sustainable and high-performance textile materials.
Strengthening Position in Man-Made Cellulosic Fibres
Vadiraj Kulkarni, Business Head of Grasim Pulp & Fibre, reiterated that the investment will solidify the company’s leadership in the evolving Man-Made Cellulosic Fibres (MMCF) market. “By expanding Lyocell capacity, we are accelerating the shift towards high-performance fibres with a lower environmental impact,” Kulkarni noted. He explained that Lyocell enhances Grasim's product mix, supports premium applications, and aligns with the company's focus on delivering differentiated, sustainable solutions to global markets.
Lyocell is a cutting-edge fibre utilized across various applications, including apparel, home textiles, and technical textiles. It is renowned for its durability, breathability, comfort, and significantly lower environmental footprint, owing to its closed-loop manufacturing process.
Grasim anticipates that the share of specialty products, including Lyocell, Modal, Dope-dyed, and Recycled fibres, within its portfolio will increase to 35% by 2030, reinforcing its commitment to innovation and sustainability in the textile sector.