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Grasim Industries Announces ₹3,094 Cr Investment To Expand Lyocell Production

• By  Textile Excellence
• June 15, 2026

The Aditya Birla Group company has announced a fresh investment of ₹3,094 crore to expand its Lyocell production capacity at Harihar, Karnataka. The move underlines Grasim's confidence in the growing global demand for environmentally responsible textile materials.

The expansion, known as Phase II, 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 begin operations in 2028, while the second is scheduled for commissioning by 2030.

This investment comes on top of Grasim's Phase I Lyocell project, a 55,000 TPA facility already under construction at the same location and expected to be operational by mid-2027. Once all phases are completed, Grasim's total Lyocell capacity will rise to nearly 210,000 TPA, placing it among the world's largest producers of the fibre.

With this expansion, Grasim expects its overall cellulosic fibre capacity to cross one million tonnes annually by 2030, while increasing the share of specialty fibres in its portfolio to 35 per cent.

This investment comes on top of Grasim's Phase I Lyocell project, a 55,000 TPA facility already under construction at the same location and expected to be operational by mid-2027. Once all phases are completed, Grasim's total Lyocell capacity will rise to nearly 210,000 TPA, placing it among the world's largest producers of the fibre.