Grasim Industries shares in focus on nod to Rs 3,094 crore capex plan

Shares of Grasim Industries Ltd are in focus today after board of the Aditya Birla Group firm approved capex of Rs 3,094 Crore to expand Lyocell, third-generation Cellulosic Staple Fibre (CSF), capacity at Harihar, Karnataka. In the previous session, Grasim Industries shares fell 1.06% to Rs 3050. Market cap of the firm stood at Rs 2.07 lakh crore. A total of 5107 shares changed hands amounting to a turnover of Rs 1.56 crore. 

In February 2025, the Board of Directors cleared capacity expansion of Lyocell at Harihar, Karnataka of 55K TPA. The capacity is under construction. 

"Today, the Board of Directors approved capex for Phase II capacity expansion of Lyocell at Harihar, Karnataka. The total proposed capacity expansion of Phase II would be 110K TPA. With this, the Lyocell capacity addition would be 165K TPA (Phase I and II at Harihar, combined)," said Grasim Industries on June 8, 2026. 

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, "This investment also marks another significant step in Grasim’s strategic expansion of advanced fibre capabilities, catering to the growing global demand for sustainable and high-performance textile materials. This fresh expansion will catapult Grasim’s overall Cellulosic Fibres capacity beyond 1 million tonnes per annum, reinforcing its position as a global leader in sustainable Man-Made Cellulosic Fibres (MMCF)."

This additional capacity will complement the Phase I Lyocell plant of 55K TPA currently under construction at Harihar, which is expected to be commissioned by mid-2027. Upon completion, Grasim’s total Lyocell capacity, will reach nearly 210K TPA, making it one of the largest Lyocell producers globally.