Grasim Industries Limited has approved a capital expenditure of Rs 3,094 crore to expand Lyocell, its third-generation Cellulosic Staple Fibre (CSF) capacity, at Harihar, Karnataka. The board gave its approval at a meeting held on June 8, 2026.
The Phase II expansion will add 110,000 tonnes per annum (TPA) of Lyocell capacity through two lines of 55K TPA each, equivalent to 150 tons per day per line. The first line is expected to be commissioned by mid-2028, and the second line by mid-2030.
The fresh capacity will complement Grasim's Phase I Lyocell plant of 55K TPA, currently under construction at the same site and expected to be commissioned by mid-2027. With both phases combined, Grasim's Lyocell capacity will reach nearly 210,000 TPA, making it one of the largest Lyocell producers globally.
Grasim currently operates 890,000 TPA of CSF capacity and recorded 97% capacity utilisation in financial year 2026. Post the expansion, Grasim's total Cellulosic Staple Fibre capacity will surpass 1 million tonnes annually by 2030. The investment will be funded through a mix of internal accruals and borrowed funds.
Lyocell is a next-generation fibre used across apparel, home textiles, and technical textile applications, manufactured through a closed-loop process. Grasim's expansion targets growing global demand for sustainable and high-performance textile materials. Grasim's specialty product portfolio share, including Lyocell, Modal, Dope-dyed and Recycled fibres, is expected to increase to 35% by 2030.
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