Grasim Bets ₹3,094 Crore on Sustainable Fibres, Expands Lyocell Capacity in Karnataka

!Grasim Industries has announced a significant investment of ₹3,094 crore to expand its lyocell fibre manufacturing capacity at its Harihar facility in Karnataka, reinforcing its focus on sustainable and value-added textile solutions. The company will add 110,000 tonnes per annum (TPA) of new capacity through two production lines of 55,000 TPA each, with the first line expected to be commissioned by 2028 and the second by 2030. This expansion comes in addition to the existing Phase-I lyocell plant of 55,000 TPA currently under construction, which is scheduled to begin operations by mid-2027. Upon completion of both phases, Grasim’s total lyocell capacity will reach nearly 210,000 TPA. The investment is expected to take the company’s overall cellulosic fibre capacity beyond 1 million TPA by 2030, while increasing the contribution of specialty products such as lyocell, modal, dope-dyed and recycled fibres to 35% of the portfolio. Lyocell, a fibre derived from wood pulp through a closed-loop manufacturing process, is widely used in apparel, home textiles and technical textile applications and is gaining traction as a more sustainable alternative in the textile industry. The expansion strengthens Grasim’s position in the growing sustainable fibre market and reflects its long-term strategy of focusing on high-performance, environmentally responsible products for both domestic and global markets. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.