Grasim Targets Global Leadership with Massive ₹3,094 Crore Lyocell Capacity Expansion

#GrasimIndustries #AdityaBirlaGroup #SustainableFashion #Lyocell #MakeInIndia #GreenTextiles #CircularEconomy #EcoFriendlyInnovation #IndianManufacturing #MMCF

“This expansion strengthens our position in the evolving MMCF landscape by scaling a high-value, future-ready fibre segment. By expanding Lyocell capacity, we are accelerating the shift towards high performance fibres with a lower environmental impact. Lyocell enhances our product mix, supports premium applications, and aligns with our focus on delivering differentiated, sustainable solutions to global markets.” - Vadiraj Kulkarni, Business Head - Grasim Pulp & Fibre

June 2026 : Grasim Industries Limited has recently announced a massive ₹3,094 crore investment for a greener future of the global textile landscape. The flagship powerhouse of the Aditya Birla Group is doubling down on its eco-friendly solutions, specifically targeting Phase II expansion of its Lyocell capacity at Harihar, Karnataka. This capital infusion will introduce two production lines, each pushing out 55K TPA (150 tons per day), with commercial targets set for 2028 and 2030 respectively.

This strategy is perfectly timed to merge with the company's Phase I Lyocell plant, which is already under construction at Harihar and slated for mid-2027 operations. Once the entire infrastructure fires up, Grasim’s total Lyocell footprint will skyrocket to nearly 210K TPA, securing its crown among the absolute elite of global Lyocell manufacturers.

Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “The Aditya Birla Group has always demonstrated the willingness to invest ahead of the curve in sectors that will define India’s future competitiveness and economic resilience. This investment carries forward that legacy. It is a vote of confidence in the scale and promise of the Indian market, aligns closely with the aspirations of Make in India, and will help position India as a more competitive and resilient force in the global textile industry.” He added, “This investment also marks another significant step in Grasim’s strategic expansion of advanced fibre capabilities, catering to the growing global demand for sustainable and high-performance textile materials. This fresh expansion will catapult Grasim’s overall Cellulosic Fibres capacity beyond 1 million tonnes per annum, reinforcing its position as a global leader in sustainable Man-Made Cellulosic Fibres (MMCF).”

Stepping up the momentum, the business leadership is eagerly eyeing the shifting consumer preferences toward conscious clothing. By injecting Lyocell into everyday wear, home essentials, and technical fabrics through a completely circular, closed-loop production methodology, the company is bridging the gap between luxury textures and minimal planetary impact.

Mr. Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre added, “This expansion strengthens our position in the evolving MMCF landscape by scaling a high-value, future-ready fibre segment. By expanding Lyocell capacity, we are accelerating the shift towards high performance fibres with a lower environmental impact. Lyocell enhances our product mix, supports premium applications, and aligns with our focus on delivering differentiated, sustainable solutions to global markets.”

Looking at the broader horizon, this milestone isn't just about factory capacity - it’s about reshaping portfolios. With this push, Grasim is securely on track to elevate its specialized high-value offerings (including Lyocell, Modal, Dope-dyed, and Recycled fibers) to a commanding 35% share of its entire product basket by the turn of the decade.

Pro MFG Media Newsletter

Get regular manufacturing insights that matter and enable business.