Grasim Industries has paid ₹72.75 crore as interest to the holders of its 7.50% Non-Convertible Debentures (NCDs) on the due date of June 10, 2026. The payment was made net of Tax Deducted at Source (TDS), ensuring compliance with regulatory obligations. This disbursement covers the interest obligation for the debenture series identified by ISIN INE047A08190, which carries an annual interest frequency.

The total interest amount due was ₹75.00 crore. However, a TDS amount of ₹2.25 crore was deducted in accordance with the Income Tax Act, 1961, resulting in the net payout of ₹72.75 crore to the debenture holders. The company confirmed that there was no delay in the payment, and the funds were credited on the scheduled due date.

The debentures in question are 7.50% Fully Paid, Unsecured, Listed, Rated, Redeemable NCDs, issued with a total size of ₹1,000 crore. The record date for determining the eligibility of debenture holders for this interest payment was May 26, 2026. The previous interest payment for this series was made on June 10, 2025.

Details of Interest Payment

The following table outlines the specific details of the interest payment made by Grasim Industries:

*Interest payment is subject to taxes. Accordingly, the interest payment is made net of TDS for certain debenture holders. Tax deducted at source amounting to ₹ 2.25 crore which shall be deposited in accordance with the Income Tax Act, 1961.

The certificate regarding this payment was submitted to the exchanges in reference to Regulation 57(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Neelabja Chakrabarty, Company Secretary and Compliance Officer, signed the disclosure on behalf of Grasim Industries.

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.