Grasim greenlights $323M Lyocell capacity expansion at Karnataka plant

Aditya Birla Group flagship Grasim Industries has approved a Rs. 3,094 crore Phase II investment to add 110,000 TPA of Lyocell fibre capacity at its Harihar, Karnataka facility, deepening its bet on sustainable cellulosic fibres for apparel supply chains.

— Source publishedTue, 9 Jun, 2026, 09:00 IST·First seen Tue, 9 Jun, 2026, 09:09 IST·Source Apparel Resources India

What happened

Grasim Industries, Aditya Birla Group's flagship, approved a Rs. 3,094 crore (US $323 million) Phase II expansion to add 110,000 TPA of Lyocell fibre capacity

Key facts

  • Rs. 3,094 crore
  • US $323 million
  • 110,000 TPA

Why this matters

This capacity build entrenches Aditya Birla as a scale challenger in premium cellulosics, raising the bar for any Western entrant and tightening the M&A window for smaller specialty fibre players in Asia.