Grasim Industries approves Rs 3,094 Cr capex for Lyocell capacity expansion
GRASIM · price
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On 8 June 2026, Grasim's board approved Rs 3,094 Cr capex for Phase II Lyocell capacity expansion of 110K TPA at Harihar, Karnataka. Two 55K TPA lines will commission by mid-2028 and mid-2030. With Phase I (55K TPA under construction), total Lyocell capacity will reach about 210K TPA, pushing overall Cellulosic Staple Fibre capacity beyond 1 million TPA by 2030. Existing CSF capacity is 890K TPA at 97 percent utilization. Funded by a mix of internal accruals and borrowed funds.
Major growth capex funded partly by debt may pressure near-term returns, but positions Grasim as a global leader in sustainable MMCF fibres.