Birla Lao Pulp and Plantations Company Limited is the Aditya Birla Group's latest international project. It is located in the Lao People's Democratic Republic (Laos). This company is investing US $350 million for pulp wood plantations and a pulp plant to support the Group's viscose staple fibre (VSF) business. Grasim Industries Limited, India, Thai Rayon Public Co. Ltd., Thailand, and PT Indo Bharat Rayon, Indonesia have invested in this company as equity holders.

The company has acquired 50,000 hectares of land from the government of Laos on lease for a period of 75 years. The project will be implemented in two phases — the plantation phase and the setting up of the dissolving pulp plant. The commissioning of the pulp plant will coincide with the harvest of the first plantation. The pulp produced in Laos will be exported to the Group's rayon fibre manufacturing units in India, Thailand and Indonesia, as well as to newer locations.

Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group avers, "This integrated plantation and pulp plant project with a 200,000 tpa capacity, is a forward step, planned ahead of time to ensure that our future expansion needs of rayon fibre business are met. In the cellulosic fibre business, we are in a leadership position globally and our intent is to grow the business exponentially. We will be requiring far larger quantities of pulp as our expansion plans fructify. Our strategy to maintain our edge dictates the setting up of holistic backward integration from the plantation to the final VSF production."

Laos is strategically located to support the Group's rayon fibre manufacturing plans in the South East Asia region where textile hubs are growing. The Aditya Birla Group has six rayon fibre manufacturing locations in India, Indonesia, Thailand and China and three pulp manufacturing locations in Canada and India.