Grasim Industries has approved a capital expenditure of ₹3,094 crore to expand its Lyocell fibre production capacity by 110,000 tonnes per annum (TPA) at Harihar, Karnataka. The investment, sanctioned by the Board on June 8, 2026, will be executed in two phases of 55,000 TPA each, with commissioning scheduled for mid-2028 and mid-2030. This expansion complements the ongoing Phase I project of 55,000 TPA, aiming to position the company as one of the largest Lyocell producers globally and push its total Cellulosic Staple Fibre (CSF) capacity beyond 1 million tonnes annually by 2030.

Investment and Capacity Details

The approved capex will be funded through a mix of internal accruals and borrowed funds. The project targets the growing global demand for sustainable, high-performance textile materials. Post-expansion, Grasim's total Lyocell capacity will reach nearly 210,000 TPA. The company currently operates an existing CSF capacity of 890,000 TPA with a utilization rate of 97% in FY 2026.

Strategic Rationale

Lyocell is a third-generation cellulosic fibre produced via a closed-loop process, offering lower environmental impact and high durability. The expansion will increase Grasim's specialty product portfolio share—including Lyocell, Modal, Dope-dyed, and Recycled fibres—to 35% by 2030. Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, highlighted that the investment aligns with the 'Make in India' initiative and strengthens India's position in the global textile industry. Mr. Vadiraj Kulkarni, Business Head, Grasim Pulp & Fibre, noted that the move accelerates the shift towards high-performance, sustainable fibres.

Grasim Industries has paid ₹61.83 crore as interest to holders of its 6.56% Non-Convertible Debentures (NCDs) for the Series I issue maturing in 2030. The payment was made on June 8, 2026, following a delay from the scheduled due date of June 6, 2026, which was a non-business day. The interest was paid net of Tax Deducted at Source (TDS) amounting to ₹3.77 crore, which will be deposited in accordance with the Income Tax Act, 1961.

The company submitted a certificate to BSE Limited regarding the payment, referencing Regulation 57(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated October 15, 2025. The NCDs carry an ISIN of INE047A08240 and have a total issue size of ₹1,000 crore. This marks the first interest payment on the debentures, which were allotted on June 6, 2025.

Details of Interest Payment

The following table outlines the specific details of the interest payment transaction:

The payment was processed on the subsequent working day as per the SEBI Master Circular provisions. The reason for the delay was explicitly stated as the original interest payment date falling on a Saturday, which is a non-business day. The company confirmed that there was no change in the frequency of payment and that the full amount due was settled.