Birla Cellulose, one of the affiliates of the Aditya Birla Group, will establish new rayon plants with a production capacity of 240 tons per day in two locations which are Vilayat in Gujarat and Egypt. The amount of investment for each plant is Rs 800 crore ($200 million).

The company has already invested Rs 40 crore in its Textile Research Application and Development Centre (TRADC) in Gujarat to carry out new material development aiming to promote eco-fashion. The company now has a 23% market share in the global rayon S market, and plans to increase its share to 30% by 2010 through adding installation capacity of 2,400 tons to the current capacity.