Grasim Industries, the flagship company of the Aditya Birla Group, has approved an investment of ₹3,094 crore to expand its Lyocell fibre manufacturing capacity at Harihar in Karnataka.

The Phase II expansion project will add 1.10 lakh tonnes per annum (tpa) of Lyocell capacity through the installation of two production lines of 55,000 tpa each. The first line is expected to be commissioned by 2028, while the second is slated to become operational by 2030.

The company said the project will be financed through a combination of debt and internal accruals.

The planned expansion will complement Grasim’s ongoing Phase I Lyocell project at Harihar, which is currently under construction. The Phase I facility, with a capacity of 55,000 tpa, is expected to be commissioned by mid-2027.