Grasim Industries Limited has announced a capital expenditure of Rs 3,094 crore approved by its board of directors for expanding Lyocell, the third-generation Cellulosic Staple Fibre capacity at its Harihar facility in Karnataka. This represents Phase II of the Lyocell expansion plan at the site.
The board approved Phase II capacity expansion of 110,000 tonnes per annum consisting of two lines of 55,000 TPA each. The first line is expected to be commissioned by mid-2028, and the second by mid-2030. Phase I of 55,000 TPA, approved in February 2025, is already under construction with commissioning expected by mid-2027.
Upon completion of both phases, Grasim's total Lyocell capacity will reach nearly 210,000 TPA, making it among the largest Lyocell producers globally. Grasim's overall Cellulosic Staple Fibre capacity will surpass 1 million tonnes annually by 2030. The existing CSF capacity stands at 890,000 TPA, which operated at 97 percent utilisation in fiscal 2026. Including both phases, the total planned Lyocell addition at Harihar stands at 165,000 TPA.
The expansion will be funded through a mix of internal accruals and borrowed funds. Grasim's specialty product portfolio share, including Lyocell, Modal, Dope-dyed, and Recycled fibres, is expected to increase to 35 percent by 2030.
Lyocell is a next-generation fibre used across apparel, home textiles, and technical textile applications. It is manufactured through a closed-loop process and offers durability, breathability, and lower environmental impact. The expansion is aimed at supporting growing global demand for sustainable and high-performance textile materials.
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