Grasim Unleashes ₹3,094 Crore Capex: Lyocell Expansion Puts Indian Textile Sector on Global Map

Grasim Unleashes ₹3,094 Crore Capex: Lyocell Expansion Puts Indian Textile Sector on Global Map​

Grasim Industries Ltd, a key flagship entity of the Aditya Birla Group, has announced a substantial strategic expansion. The company's Board of Directors approved a capital expenditure (capex) amounting to Rs 3,094 crore on Monday. This investment is earmarked for Phase II expansion of its Lyocell manufacturing capacity at Harihar in Karnataka.

The decision underscores Grasim’s unwavering commitment to strengthening India’s position within the global textile market. The capex will be funded through a combination of internal accruals and borrowed funds, supporting its growth trajectory.

Expanding Global Capacity with Advanced Fibres​

This significant investment is designed to enable Grasim’s participation in the increasing global demand for sustainable and high-performance textile materials. Lyocell itself is defined as a semi-synthetic fibre, finding wide application across various sectors including apparel, technical textiles, and home furnishings.

The expansion phase involves setting up an additional 110K TPA capacity. This new production will consist of two lines, each capable of 55K TPA. The timelines set for these advanced lines are ambitious, with the first line expected to be commissioned by 2028 and the second by 2030.

Projecting Global Leadership in Cellulosic Fibres​

This fresh capacity addition will substantially complement Grasim’s existing Lyocell operations. The company currently has a Phase I Lyocell plant of 55K TPA under construction, slated for commissioning by mid-2027.

Upon the successful completion of this expansion, Grasim's total Lyocell capacity is projected to reach nearly 210K TPA. This level of production would cement Grasim as one of the largest Lyocell producers globally. Furthermore, the move reinforces the company’s ability to push its overall Cellulosic Fibres capacity beyond 1 million tonnes per annum.

Boosting 'Make in India' with Strategic Investment​

Chairman Kumar Mangalam Birla commented on the development, emphasizing the Aditya Birla Group's dedication to investing in sectors vital for India's long-term economic growth and global competitiveness. This investment directly supports the objectives of the Make in India initiative.

Birla stated that the project reflects deep confidence in the vast potential of the Indian market. He added that this expansion represents another critical step in Grasim’s strategic advance of advanced fibre capabilities. The company is thus positioning itself as a stronger and more resilient player in the global textile value chain.