Summary of Key Information:
Reporting Period (Quarter/Year): Not Applicable (Capex Announcement)
Nature of Filing / Announcement: Outcome of Board Meeting - Capital Expenditure Approval
Date of Board Meeting / Approval: 8th June 2026
Audit Opinion: Not Specified
Auditor's Comment: Not Specified
Key Financial Highlights:
Investment Required: ₹3,094 Crore (in tranches)
Mode of Financing: Mix of internal accrual and borrowed funds
Corporate Actions:
Capital Expenditure Approval: Board approved capex of ₹3,094 Crore for Lyocell capacity expansion
Dividend declarations: Not Specified
Share split/bonus/buyback: Not Specified
Capital raising: Not Specified
Capacity Expansion Details:
Existing Capacity: 890K TPA Cellulosic Staple Fibre (CSF)
Existing Capacity Utilization: 97% (FY 2026)
Previous Expansion (Phase I): 55K TPA Lyocell capacity approved in February 2025, currently under construction, expected commissioning by mid-2027
New Expansion (Phase II): 110K TPA Lyocell capacity approved
- Consists of 2 lines of 55K TPA (150 Tons per day) each
- Expected commissioning timeline:
- First 55K TPA line: mid-2028
- Second 55K TPA line: mid-2030
Total Lyocell Capacity Post Expansion: Nearly 210K TPA (Phase I + Phase II)
Total Cellulosic Staple Fibre Capacity Post Expansion: Will surpass 1 million tonnes annually by 2030
Strategic Rationale:
- Support and participate in growing global demand for sustainable and high-performance textile materials
- Strengthen position in evolving Man-Made Cellulosic Fibres (MMCF) landscape
- Accelerate shift towards high performance fibres with lower environmental impact
- Enhance specialty product portfolio (Lyocell, Modal, Dope-dyed and Recycled fibres)
- Increase specialty portfolio share to 35% by 2030
- Position India as competitive force in global textile industry
- Align with Make in India aspirations
Management Comments:
Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group: Emphasized investment ahead of curve in sectors defining India's future competitiveness, vote of confidence in Indian market, and reinforcement of Grasim's position as global leader in sustainable MMCF.
Mr. Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre: Highlighted strengthening position in MMCF landscape, scaling high-value future-ready fibre segment, and delivering differentiated sustainable solutions to global markets.
Product Information:
Lyocell Characteristics: Third-generation Cellulosic Staple Fibre, versatile next-generation fibre used across apparel, home textiles, and technical textile applications, manufactured through highly efficient closed-loop process, offers durability, breathability, comfort, and lower environmental impact.
Geographic Location:
Expansion Location: Harihar, Karnataka, India
Corporate Communications:
Corporate Office: Aditya Birla Centre, 'A' Wing, 2nd Floor, S.K. Ahire Marg, Worli, Mumbai 400 030, India
Additional Recipients:
- Luxembourg Stock Exchange
- Citibank N.A. (Depositary Receipt Services and Custodial Services)