Grasim Inds gains as board OKs Lyocell capacity expansion

The company will expand Phase II Lyocell capacity of 110K TPA at Harihar, Karnataka. This expansion will consist of 2 lines of 55K TPA (150 Tons per day) each. The first line is expected to be commissioned by 2028, and the second line is expected to be commissioned by 2030.

This additional capacity will complement the Phase I Lyocell plant of 55K TPA currently under construction at Harihar, which is expected to be commissioned by mid-2027. Upon completion, Grasim's total Lyocell capacity, will reach nearly 210K TPA, making it one of the largest Lyocell producers globally.

Post expansion, total Cellulosic Staple Fibre (CSF) capacity would surpass 1 million tonnes annually by 2030.

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, '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).'

Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple Fibre and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn and fabrics producer in India. The company recently has entered paints business and setting up six plants across pan-India locations.

The company reported 30.87% jump in consolidated net profit to Rs 1,957.74 crore on 15.44% increase in revenue from operations to Rs 51,101.11 crore in Q4 FY26 over Q4 FY25.

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