Grasim Approves ₹3,094 Cr Capex for Lyocell Expansion

Grasim Industries' Board of Directors has approved a capital expenditure of Rs. 3,094 Crore for the Phase II expansion of its Lyocell facility in Harihar, Karnataka. This expansion will add 110,000 TPA of Lyocell capacity, with two lines of 55,000 TPA each. The first line is expected to be commissioned by mid-2028 and the second by mid-2030. This follows a previously approved Phase I expansion of 55,000 TPA. The investment aims to support growing global demand for sustainable textile materials and will increase Grasim's total Cellulosic Staple Fibre (CSF) capacity to over 1 million tonnes annually by 2030. The expansion will be financed through a mix of internal accruals and borrowed funds.