en.Wedoany.com Reported - Recently, India's Grasim Industries announced an investment of INR 30.94 billion to advance the second phase of lyocell fiber capacity expansion in Harihar, Karnataka. The project will add 110,000 tons of annual capacity, built across two production lines of 55,000 tons each. The first line is expected to commence production in 2028, and the second line in 2030.
This expansion directly addresses the shifting demand in global textile materials toward sustainable fibers. Lyocell fiber, a new-generation cellulose fiber, is widely used in apparel, home textiles, and technical textiles, offering durability, breathability, comfort, and a lower environmental impact. Grasim has already built the first phase of its 55,000-ton lyocell project in Harihar, expected to be operational by mid-2027. Upon completion of the second phase expansion, combined with the capacity under construction in the first phase, the company's total lyocell capacity will approach 210,000 tons, further strengthening its scale advantage in the sustainable man-made cellulose fiber market. For India's textile industry, the expansion of lyocell capacity is not merely an increase in a single fiber product but also relates to the upstream material supply capability for the yarn, fabric, apparel, home textiles, functional textiles, and export manufacturing chain.
Grasim stated that after the completion of the second phase project, the company's total cellulosic staple fiber capacity will exceed 1 million tons by 2030.
This investment also reflects that India's textile industry is transitioning from traditional scale manufacturing to high-value-added materials. In the past, India's textile and apparel industry had a foundation in labor, cotton spinning, garment processing, and exports, but it still requires continuous expansion in high-performance, low-environmental-impact, and differentiated fiber materials. Lyocell employs a highly efficient closed-loop production process, making it easier to meet international brands' procurement requirements for eco-friendly materials, traceable supply chains, and low-impact fibers. As consumer brands in Europe, the Americas, and Asia increase their sustainable procurement ratios, the ability of fiber producers to stably supply lyocell, modal, dope-dyed fibers, and recycled fibers will affect the order-taking capacity of downstream fabric manufacturers and apparel makers. Grasim plans to increase the share of its specialty product portfolio, including lyocell, modal, dope-dyed, and recycled fibers, to 35% by 2030, indicating that its expansion is not merely about pursuing basic capacity but is driving the product structure toward higher-value materials.
The Harihar project also holds significant value for industrial chain integration. Karnataka and its surrounding areas have a foundation in textiles, apparel, and industrial manufacturing. The new lyocell capacity can provide a more stable source of green fibers for local Indian yarn, fabric, and garment enterprises, reducing dependence on external supplies for some high-end fiber materials. For export-oriented companies, a stable domestic supply of sustainable fibers helps shorten delivery cycles, optimize cost structures, and better respond to international buyers' environmental compliance requirements. With growing demand for technical textiles, sportswear, home textiles, and functional fabrics, lyocell materials will also extend from traditional apparel applications to more niche applications in light industry.
Subsequent project progress will focus on the 2027 commissioning milestone for the first phase's 55,000-ton line, the construction pace of the two lines in the second phase, funding arrangements, and downstream customer certification. If this expansion proceeds as planned, India will gain greater domestic capacity support in the sustainable fiber manufacturing sector, and Grasim will further elevate its position in the global man-made cellulose fiber supply chain.
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