Grasim Invests ₹3,094 Cr in Lyocell Expansion at Harihar

Grasim Boosts Lyocell Production with Major Capex

Grasim Industries, a flagship company of the Aditya Birla Group, has announced a substantial capital expenditure (capex) of ₹3,094 crore to significantly enhance its Lyocell manufacturing capacity. This strategic investment will be channeled into expanding the Lyocell plant located in Harihar, Karnataka.

The expansion, termed Phase II, is slated to add 110,000 tonnes per annum (TPA) of Lyocell capacity. This ambitious project is expected to be completed by 2030, upon which the total Lyocell capacity of Grasim will reach approximately 210,000 TPA. This move positions Grasim to meet the growing global demand for sustainable textile solutions.

Lyocell, a versatile and eco-friendly cellulosic fiber, is derived from wood pulp through a closed-loop process that minimizes environmental impact. Its applications span across the textile industry, including apparel, home furnishings, and non-woven products, owing to its softness, strength, and biodegradability.

This significant investment underscores Grasim’s commitment to strengthening its position in the global man-made cellulosic fiber market and capitalizing on the increasing consumer preference for sustainable materials. The expansion in Harihar is expected to not only boost the company’s production capabilities but also contribute to the regional economy through job creation and industrial growth.