Grasim Industries Limited has announced a fresh capital expenditure of ₹3,094 crore for Phase II expansion of its Lyocell capacity at Harihar, Karnataka.
The investment forms part of the company's strategy to expand its sustainable fibre business and cater to the growing global demand for high-performance textile materials.
The company's board has approved Phase II expansion of Lyocell capacity at its Harihar facility in Karnataka.
The proposed Phase II expansion will add 110 KTPA of capacity through two production lines of 55 KTPA each.
This follows the previously approved Phase I expansion of 55 KTPA, which is currently under construction.
With the latest approval, Grasim's total Lyocell capacity addition at Harihar will increase to 165 KTPA, including both Phase I and Phase II projects.
Upon completion of the expansion plans, the company's total Lyocell capacity is expected to reach nearly 210 KTPA, making it one of the world's largest Lyocell producers.
The company stated that the investment is intended to support growing global demand for sustainable and high-performance textile materials.
Lyocell is a next-generation fibre used across apparel, home textiles, and technical textile applications and is produced through a closed-loop manufacturing process with lower environmental impact.
According to the company, the first 55 KTPA line under Phase II is expected to be commissioned by mid-2028, while the second line is scheduled for commissioning by mid-2030.
The expansion will be funded through a mix of internal accruals and borrowed funds.
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As of 09 June 2026, at 11:16 AM, Grasim Industries share price is trading at ₹3,095.20 per share, reflecting a surge of 1.48% from the previous closing price.
Grasim Industries' ₹3,094 crore investment in Lyocell capacity expansion underscores its focus on sustainable and specialty fibres. The project is expected to strengthen the company's leadership in the cellulosic fibre segment while positioning it to benefit from rising global demand for environmentally friendly textile materials.
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Published on: Jun 9, 2026, 12:36 PM IST
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