India-Based Birla Cellulose is Leading the Industry with Sustainable Options and Innovation
India-based Birla Cellulose is the recipient of the “Dark Green Shirt” ranking in Canopy’s Hot Button Report for four consecutive years. This recognition highlights the company’s strong commitment to sustainability, significant efforts in reducing its environmental impact, and their leadership in protecting endangered forests and reinforcing its role in advancing sustainable practices in the textile industry.
Innovation launched in the past two years that earned this award include Intellicolor, EcoSoft and SaFR. Birla Viscose Intellicolor was unveiled earlier this year, offering salt-free dyeing to address the long-standing challenge of conventional reactive dyeing.
EcoSoft is their luxurious bamboo viscose fiber derived from sustainably managed bamboo forests and fortified with FSC certification, thus “preserving nature’s rhythm” while crafting a fabric that caters to modern-day demands. Each EcoSoft creation comes with a molecular tracer transaction certificate, enhancing the fabric’s authenticity and building trust that reflects the company’s unwavering commitment to transparency.
Unveiled at ITMA Milan in 2023, Birla SaFR is a phosphate-based, sustainable cellulosic fiber, ideal for making flame-retardant fabrics with exceptional performance and eco-friendly characteristics. H.K. Agarwal, managing director, Grasim Industries Ltd & business director, pulp & fiber business, stated, “Birla SaFR is the first flame-retardant fiber developed in India specifically for the technical textile segment. We take immense pride in knowing that our product will be used in various categories of protective wear, ultimately safeguarding lives.”
Birla Cellulose, a flagship division of the Aditya Birla Group, stands as a global leader in sustainable fiber solutions. Renowned for its commitment to environmental stewardship and innovation, the company specializes in the production of high-quality cellulosic fibers, which are integral to a wide range of textiles.
The company has established itself as a pioneer in developing eco-friendly and technologically advanced fibers, catering to the evolving demands of the fashion and apparel industries. With a focus on integrating sustainability into every facet of its operations, Birla Cellulose is dedicated to advancing the future of textiles through responsible practices and cutting-edge technologies.
We spoke with H.K. Agarwal who delved into the vision for the future of sustainable textiles, the challenges faced in the industry, and the strategies driving Birla Cellulose’s success.
International Fiber Journal: Kindly provide a history about your company.
H.K. Agarwal: Birla Cellulose is a producer of manmade cellulosic fibers. It is a division of Grasim Industries, part of the US $100 billion Aditya Birla Group. It was founded in 1947 – the same year as India’s independence and established by GD Birla, founder and patriarch of the group and a close confidant of Mahatma Gandhi, who lead the movement for India’s independence. Anticipating the loss of key cotton regions to Pakistan, post partition of India, and with synthetic fibers still not available in India at that time, GD Birla chose to invest in manmade cellulosic fibers as an alternative to cotton, to meet the clothing needs of India’s large population.
IFJ: Please share details about your manufacturing infrastructure and annual capacity.
H.K. Agarwal: The first cellulose fiber plant was started in the central India state of Madhya Pradesh in Nagda with a capacity of just 5,000 tonnes. The company also started the process of indigenization of machinery, processes, equipment and raw materials. The current cellulose fiber capacity is now 1.25 million tonnes. Birla Cellulose now has four plants in India under Grasim which have a capacity of 850 KT and three plants outside India
IFJ: What are the core company products and solutions you offer for the market?
H.K. Agarwal: We manufacture several varieties of manmade cellulosic fiber like viscose staple fiber, Modal, dyed fiber, fire retardant fiber, short cut fiber, Lyocell fiber, etc. These fibers can be also used in the production of nonwovens. We also supply fibers based on the concept of circular textiles.
We specialize in sustainable, value-added fibers with a closed-loop manufacturing process that recycles chemicals and water. Our sulphur-free Lyocell product, Excel, is produced on three lines with plans for a fourth. Lyocell, offers high tenacity both dry and wet, closely mirroring cotton’s properties. It enhances softness, richness, and moisture absorption when blended with cotton, and thus complements cotton effectively.
IFJ: Do you offer any products in particular for the nonwovens sector?
H.K. Agarwal: For nonwoven applications, we provide standard fibers, short-cut fibers for flushable wipes, and spun-dyed viscose fibers. We also recently launched a fiber which is used in the top layer of feminine hygiene products. This top layer is normally produced through polymer fibers, but we are offering a biodegradable substitute, and it is gaining popularity among consumers in the U.S.
IFJ: Have you launched any new products recently or planning to in the near future?
H.K. Agarwal: At ITMA 2024 in Milan, Italy, we introduced our innovative flame-retardant fibers, ‘Birla SaFR,’ designed for use in protective clothing for firemen. At Bharat Tex 2024, India’s premier textile exhibition, we introduced ‘Intellicolor,’ an innovative fiber that eliminates the need for double dyeing in polyester/acrylic and cellulosic fiber blends.
In the traditional dyeing process, the fabric is dyed first for polyester in the fabric and then dyed for the second time for the cellulosic fiber content. So, the Intellicolor fiber blended with polyester/acrylic can be dyed in same/single bath ensuring huge savings in dyes, chemicals, water and energy while also minimizing the environmental impact. We are getting a very encouraging response for the Intelli-
color fiber.
IFJ: What are the key trends in consumer demand and the growth trajectory of the global and Indian clothing market in context of cellulose fiber usage?
H.K. Agarwal: Cellulosic fiber accounts for 6 to 6.5 percent of overall global consumption of fibers, whereas cotton is about 25 percent, and the rest is accounted for by manmade fibers like polyester, nylon and acrylic fibers. However, in India, cotton consumption is higher, whereas the use of cellulosic fibers matches the global average. Through innovation and business development; we’ve increased our market share of cellulosic fibers from 4.5 percent to 6-6.5 percent over the past six to seven years.
With stable cotton production, we anticipate a future increase in cellulosic fiber market share. As living standards and incomes rise, Indian consumers will prefer higher-quality fabrics as cellulosic fibers offer a soft texture and moisture absorption like cotton, complementing both
cotton and synthetics.
IFJ: How is your R&D achieved in the development of innovations offered by your company?
H.K. Agarwal: Through our state-of-the-art Textile Research and Development Centre (TRADC), Birla Cellulose invests heavily in cutting-edge research to develop high-quality, eco-friendly fibers and solutions tailored to meet the evolving needs of the global textile industry.
Our dynamic and active R&D team is dedicated to innovating new fiber technologies, improving product performance, and enhancing environmental sustainability. By leveraging advanced scientific research and technology, we strive to create sustainable and biodegradable fiber alternatives that reduce environmental impact.
Our R&D efforts also focus on optimizing manufacturing processes to achieve greater efficiency and lower resource consumption, ensuring that our products not only meet but exceed industry standards for quality and sustainability.
IFJ: How is your company increasing per capita cellulose fiber consumption?
H.K. Agarwal: Nearly a decade ago, we introduced the LIVA brand, dedicated to upholding exceptional quality of cellulosic fibers at every stage, from spinning and weaving to dyeing and printing, for all our LIVA brand licensees. Today, women’s wear brands include the LIVA name on their clothing tags, as it enhances the marketing appeal of their apparel. The inclusion of LIVA has also contributed to increased awareness and attractiveness of cellulosic fibers, significantly boosting cellulosic fiber market share in India.
IFJ: What are the key trends and growth trajectory in consumer demand of the Indian clothing market?
H.K. Agarwal: Consumer awareness is increasing significantly regarding the choice and quality of garments. The millennial generation is purchasing clothing more frequently, which is driving overall fiber consumption. Notably, the growth rate of fiber consumption in India is outpacing the global average. To support this expansion, we are introducing new and higher-quality fiber products and actively educating and guiding the textile value chain to produce superior cellulosic fiber-based yarns and fabrics.
We have observed a growing trend of global brands sourcing from India, with nominations from nearly 125 Indian and international clothing brands, including renowned names like H&M, Walmart, and Target. Among Indian brands, we are proud to be nominated by brands of Aditya Birla Retail and Reliance Trends and other brands like W and Biba, among others.
Additionally, garment brands owned by Arvind Ltd and leading Indian home textile producers such as Welspun Living and Trident Ltd utilize our VSF and Lyocell fibers in their premium home products. The increasing application of cellulose fibers is driving our company’s growth, as we continue to meet the rising demand for sustainable and high-quality textile solutions.
IFJ: What were the main challenges faced by the cellulose fiber industry in 2023 and what more challenges do you foresee in the next few years?
H.K. Agarwal: 2023 was a tough and challenging year in India as well as other countries, primarily in the U.S. and the EU, both of which are the biggest importers of apparels. The Russia-Ukraine war led to high inflationary trends and higher interest costs, which impacted consumer spending on clothing. Now since the beginning of 2024, we are seeing a slow revival for demand for clothing, but the growth rate has still not reached the pre-COVID levels.
Raw material prices like those of pulp and chemicals, as well as energy prices, have also gone up. Even logistics costs have gone up due to the Red Sea crisis. Future challenges include those related to environmental regulations becoming stricter. However, more clarity is required on those regulations.
IFJ: How important is the sustainability factor for your company?
H.K. Agarwal: Sustainability presents both challenges and opportunities for us. We are dedicated to reducing our carbon footprints and managing water consumption effectively. Globally, our plants are recognized as the lowest consumers of water among cellulose fiber manufacturers. We have implemented Zero Liquid Discharge (ZLD) technology at one of our plants, ensuring no wastewater is discharged into the environment. At another plant in India, we installed an advanced system that recovers nearly 70 percent of water from effluents. These initiatives have significantly reduced our water consumption over the past few years.
In addition to our water conservation efforts, we are focusing on reducing energy consumption. We are transitioning from coal-based energy sources to non-fossil-based alternatives, such as renewables and bio-waste. This shift not only helps in reducing our carbon emissions but also supports global efforts towards cleaner and more sustainable energy solutions.
Apart from the process side, our products such as Livaeco, Liva Reviva, Birla Excel, Birla Purocel cater to diverse needs of the textile and nonwoven value chains. They are made from renewable resources certified for best practices and manufactured in facilities with closed-loop process.
Our commitment to sustainability extends beyond our operations. We actively engage with our supply chain partners to promote eco-friendly practices and support the development of sustainable products. By fostering innovation and collaboration, we aim to lead the industry towards a more sustainable future.
Notably, the growth rate of fiber consumption in India is outpacing the global average.
IFJ: How is Birla trying to increase per capita cellulose fiber consumption?
H.K. Agarwal: We continue to support and collaborate with the textile value chain, consistently introducing innovative variants and products derived from cellulosic fibers. Our LIVA platform has been instrumental in these efforts.
Currently, we are focusing on expanding the use of cellulosic fibers in new categories, which are traditionally made from 100 percent cotton or a cotton-polyester blend. By promoting the use of sustainable and high-quality cellulosic fibers, we aim to drive a shift towards more eco-friendly home textiles, benefiting both consumers and the environment.
IFJ: Please share details of your presence in export markets.
H.K. Agarwal: Most of our exports are from our Thailand- or Indonesia-based plants as our Indian plants are mainly catering to the domestic market. However, we export a few specialty fibers from our Indian plants. We also supply to nonwoven producers in the U.S. and Europe.
IFJ: Any planned capacity expansion or new investments?
H.K. Agarwal: We recently completed a major expansion at one of our Indian plants by adding 220,000 tonnes of cellulosic fiber capacity. We are actively assessing opportunities for expansion and exploring options to enhance our fiber capacity.
IFJ: What are your expectations on future growth and opportunities for cellulose fibers in the Indian as well as overseas?
H.K. Agarwal: Birla Cellulose is fully committed to expanding the use of man-made cellulosic fibers in the textile industry by offering the highest-quality fibers, enabling manufacturers to provide superior products to their end consumers. We emphasize innovation in every aspect of our operations, continuously researching and developing new and specialty fibers that offer enhanced functionality.
Our commitment to sustainability is unwavering. We are dedicated to making our operations more sustainable by focusing on circularity and reducing our environmental impact. This includes
ongoing efforts to minimize water and energy consumption, as well as transitioning to renewable energy sources.
Through innovation, we aim to lead the industry towards a more sustainable future. By introducing cutting-edge fiber technologies and promoting the use of eco-friendly materials, we support the entire textile value chain in delivering exceptional quality and environmentally responsible products. Our LIVA platform is a testament to this commitment, providing a versatile and sustainable fiber solution that meets the diverse needs of the global textile market.
Birla Cellulose’s dedication to innovation and sustainability ensures that we remain at the forefront of the textile industry, driving positive change and setting new standards for quality and environmental stewardship.
