Valmet secures major order to modernise Grasim’s pulp infrastructure in Karnataka

In a major step toward modernising its pulp production operations in India, Grasim Industries Limited, the flagship manufacturing company of the Aditya Birla Group, has awarded a significant order to Valmet Oyj, a global leader in process technologies for the pulp, paper, and energy sectors. The contract involves the delivery of a new bleach plant, as well as comprehensive rebuilds of the brown stock washing and evaporation plant at Grasim’s Harihar Kumarapatnam site in Karnataka. Valmet confirmed that the installation phase of this project is expected to begin in the first quarter of 2026, and the order has been included in its Q1 2025 bookings.

This upgrade aligns with Grasim Industries’ broader goals of boosting process efficiency, enhancing environmental compliance, and ensuring long-term sustainability of its pulp and fibre operations. While financial details of the agreement have not been disclosed, the scope and technological complexity of the initiative suggest it is among the more substantial capital investments in India’s pulp sector this year.

What technologies are included in Valmet’s delivery to Grasim Industries?

At the heart of the new installation is Valmet’s HC Ozone Bleaching technology—a process known for its ability to achieve high brightness while significantly reducing the use of chemicals and effluent discharges. This will play a key role in the new bleach plant, where Grasim aims to lower its environmental impact and increase operational efficiency. By incorporating ozone in the bleaching process, mills can decrease reliance on chlorine-based chemicals, which is a critical step toward meeting tighter environmental norms in India and globally.

The brown stock washing rebuild is designed to improve washing efficiency, thereby reducing the carryover of unwanted substances to subsequent stages in the pulping process. Efficient washing enhances chemical recovery, lowers operating costs, and supports higher product quality.

The evaporation plant rebuild represents another crucial component of the project. Valmet will retrofit the existing system with eight new evaporator effects and a new vacuum system, along with detailed system engineering. These changes are expected to result in major gains in energy efficiency, reduced freshwater usage, and a more stable overall pulp production process. As industrial operations across India move toward reduced water consumption and energy optimisation, such technologies are increasingly seen as essential rather than optional.

Additionally, the delivery includes five TwinRoll presses, along with tower scrapers, mixers, pumps, and pro-stream systems, providing a full suite of mechanical and process control solutions tailored to the specific needs of the Harihar site.

Why is Grasim modernising its Harihar Kumarapatnam pulp plant?

Grasim Industries has long maintained a strong presence in India’s pulp and viscose fibre market, and the Harihar Kumarapatnam facility is among its most critical production sites. The site is integrated into the company’s broader value chain that supplies viscose staple fibre to domestic and international textile manufacturers.

Over the past decade, Grasim has increasingly prioritised sustainability and process innovation, partly in response to tightening environmental regulations and rising stakeholder expectations around ESG performance. The current upgrade project represents a strategic effort to future-proof its operations by reducing dependency on freshwater, improving fibre yield, and lowering chemical inputs.

The partnership with Valmet, known for its expertise in process efficiency and clean technologies, reflects Grasim’s intent to leverage global best practices in industrial modernisation. In recent years, similar technologies have been successfully deployed in pulp mills across Europe and Southeast Asia, helping companies reduce carbon intensity and enhance cost competitiveness.

How does Valmet’s HC Ozone Bleaching compare with traditional pulp bleaching?

Traditional pulp bleaching processes typically rely heavily on chlorine dioxide and other chlorine-based chemicals, which generate higher volumes of harmful byproducts and effluents. Valmet’s HC Ozone Bleaching offers a more environmentally responsible alternative by incorporating ozone, an effective oxidiser, that performs the bleaching function without creating the same level of environmental risk.

The technology not only reduces chemical consumption, but also enhances bleachability—the ease with which fibres respond to further bleaching stages. This leads to reduced operating costs and makes it easier to meet environmental discharge standards. For a site like Grasim’s Harihar facility, which operates in a region facing increasing pressure on water resources, this shift represents both a sustainability win and a business advantage.

Furthermore, ozone bleaching systems require precise control and integration into the broader pulp processing line, and Valmet’s automation and process control expertise is instrumental in ensuring that these technologies deliver on their promise.

What is the market outlook for Grasim Industries amid this technological transformation?

The partnership with Valmet comes at a time when Grasim Industries Limited is showing strong momentum in the capital markets. As of April 3, 2025, the company’s stock closed at ₹2,651.90 on the NSE, up 1.36% on the day. Over the past month, the stock has delivered a notable 11.54% return, supported by improving market sentiment around its diversified business portfolio and expanding focus on high-value verticals like paints and advanced fibres.

Financially, the company has posted solid results, with a net profit of ₹1,844.29 crore in the December 2024 quarter. Analysts are increasingly bullish on Grasim’s long-term prospects, particularly as it continues to invest in next-generation manufacturing capabilities. ICICI Securities has issued a ‘buy’ rating on the stock with a target price of ₹3,093, citing the company’s ability to sustain margins while expanding into capital-intensive growth areas.

With this latest plant modernisation project, Grasim is expected to further solidify its leadership in the Indian fibre value chain. For investors, this kind of capital expenditure reflects not just compliance with environmental regulations but also a broader push toward future-ready, resource-efficient production systems.

How does this reflect broader trends in India’s pulp and fibre industry?

India’s pulp and paper industry is undergoing a significant transformation, with increased emphasis on sustainable manufacturing practices, water conservation, and chemical management. Demand for viscose and other regenerated cellulose fibres continues to rise, particularly from the textile and hygiene product segments. This is pushing producers to invest in technologies that can deliver both environmental performance and cost advantages.

While historically, the Indian market has lagged in adopting some of the more advanced process technologies seen in Europe or North America, the situation is now changing. Companies like Grasim are setting a benchmark by aligning with global partners such as Valmet to deploy cleaner, more efficient production systems.

This reflects a broader shift toward circular manufacturing and eco-compliant processing in India’s industrial sector. With the country also strengthening its environmental regulations—especially around water use and effluent discharge—early movers stand to benefit from reduced compliance risk and enhanced export competitiveness.

Grasim Industries’ decision to partner with Valmet for an advanced bleach plant delivery, along with the evaporation plant rebuild and brown stock washing upgrade, signifies more than a technological upgrade. It represents a strategic recalibration of the company’s approach to manufacturing—balancing productivity with environmental stewardship. As India’s pulp and fibre market continues to evolve, this project could serve as a template for other producers seeking to align operational efficiency with sustainability goals.