Grasim Industries Limited has informed the Exchange that the Board of Directors, at its meeting held today, i.e. 8th June 2026, has approved capex of Rs. 3,094 Crore to expand Lyocell, third-generation Cellulosic Staple Fibre (CSF), capacity at Harihar, Karnataka.
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Grasim Industries' Board has approved a capital expenditure of Rs. 3,094 Crore to expand its Lyocell (third-generation Cellulosic Staple Fibre) capacity at the existing Harihar plant in Karnataka. Lyocell is a premium, sustainable man-made fibre with growing global demand in textiles and apparel. The expansion will strengthen Grasim's position in the high-value cellulosic fibre segment and aligns with the company's strategy to grow its speciality fibres portfolio. This is an expansion at an existing facility rather than a completely new plant setup. The capex is expected to be incurred over the project execution period.
Positive for long-term growth as it expands a high-margin, future-ready product line, but the large capital outlay may pressure near-term return ratios. Shareholders should watch for execution timelines and incremental revenue contribution once commissioned.