Phase II expansion at Harihar will take Grasim’s total Lyocell capacity to nearly 210K TPA and overall cellulosic fibre capacity beyond 1 million tonnes annually by 2030.
Grasim Industries Limited, the flagship company of the Aditya Birla Group and a global producer of cellulosic fibres, has announced a fresh investment of ₹3,094 crore to establish the second phase of its Lyocell manufacturing facility at Harihar, Karnataka.
The expansion will add 110,000 tonnes per annum (TPA) of Lyocell capacity through two production lines of 55,000 TPA (150 tonnes per day) each. The first line is scheduled for commissioning in 2028, while the second is expected to become operational by 2030.
Lyocell capacity to reach nearly 210K TPA
The newly announced investment builds on the company’s Phase I Lyocell plant, which is currently under construction at Harihar with a capacity of 55,000 TPA and is expected to be commissioned by mid-2027.
Once both phases are completed, Grasim’s total Lyocell production capacity will reach nearly 210,000 TPA, positioning the company among the world’s largest Lyocell producers.
Overall CSF capacity to exceed one million tonnes
According to the company, the latest investment will also increase its overall Cellulosic Staple Fibre (CSF) production capacity to more than one million tonnes annually by 2030, strengthening its position in the global Man-Made Cellulosic Fibre (MMCF) market.
Focus on sustainable fibre solutions
Commenting on the announcement, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said the investment reflects the group’s continued commitment to investing in sectors that will enhance India’s manufacturing competitiveness and support the Make in India initiative.
He added that the expansion would strengthen Grasim’s advanced fibre capabilities while supporting growing global demand for sustainable, high-performance textile materials.
Specialty fibre portfolio to expand
Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre, said the expansion would strengthen the company’s position in the evolving MMCF market by increasing production of high-value specialty fibres.
He noted that expanding Lyocell capacity aligns with the company’s strategy of offering differentiated and sustainable fibre solutions while supporting premium textile applications.
Growing demand for Lyocell
Lyocell is a next-generation cellulosic fibre widely used in apparel, home textiles and technical textiles. Produced through a closed-loop manufacturing process, the fibre offers durability, breathability and comfort while reducing environmental impact.
Grasim stated that the expansion will strengthen its specialty fibre portfolio, with products including Lyocell, Modal, Dope-dyed and Recycled fibres expected to account for 35% of its overall portfolio by 2030.
