Key Improvements Required
While Birla Cellulose has shared with Canopy some information proving that the company is investing in R&D for the development of new innovative fibers, the company is behind in bringing new products to market. Since the marketplace will be implementing a preference for products made from a minimum of 50% of innovative fiber sources, such as post-consumer recycled fabric sources and agricultural residues by 2020, Birla Cellulose should be much more aggressive in developing new products.
Birla Cellulose should implement the CanopyStyle audit recommendations, including the identification of the forest of origin for all the raw materials used in their products, to allow the tracking and mapping of the fiber flow from the forest to pulp and viscose mills, and all the way in the supply chain to the brands.
Birla Cellulose is expected to update its 2015 Global Wood Fiber Sourcing Policy to include a preference for FSC certification and increase its intake of FSC certified fiber.
Given growth projections, Birla Cellulose should be proactively screening future ventures against the ForestMapper and aggressively build next generation solutions into their fiber projections for the coming years.
Areas where the company is showing leadership
Aditya Birla’s investment in the relationship with Canopy has taken a new direction with the involvement of the company’s senior leadership being committed to regularly meeting to map out high level strategy and goals and engaging to move forward on solutions for their mill in the heart of ancient and endangered Boreal forest. Canopy and brands will need to actively support this leadership by encouraging resolution and agreement by the April 30, 2019 timeline.
Birla has joined the ZDHC Roadmap to Zero Programme as a contributor, to implement new standards for chemistry and processing that responsibly addresses wastewater, sludge/solid waste and air emissions from the man-made cellulosic fiber industry.
Number of viscose, lyocell and dissolving pulp mills + location and production volumes
The company owns 7 viscose mills and 4 dissolving pulp mills. In addition, the company owns one plantation associated with a projected dissolving pulp mill in Laos, the company has plans to build a new viscose facility in Turkey, and it owns a paper pulp mill in Canada that is planned for a conversion to dissolving pulp.
- Nagda in Madhya Pradesh, India.
- Harihar, Karnataka, India.
- Kharach, Gujarat, India.
- Vilayat – Gujarat, India
These 4 mills in India have a combined production capacity of 498000 tonnes of viscose staple fiber.
- Birla Jingwei Fibers Company Limited, China. Capacity 70 000 tonnes of Viscose Staple fiber.
- Indo-Bharat Rayon, Indonesia. Capacity 200 000 tonnes of Viscose Staple fiber.
- Thai Rayon, Thailand. Capacity 140 000 tonnes of Viscose Staple fiber.
- Turkey (projected capacity of 180 000 tonnes of Viscose Staple fiber)
- AV Cell, New Brunswick, Canada. Capacity 130 000 tonnes of dissolving pulp
- AV Nackawic, New Brunswick, Canada. Capacity 190 000 tonnes of dissolving pulp.
- Domsjö Fabriker AB in Sweden. Capacity 255 000 tonnes of dissolving pulp.
- Birla Cellulose, Harihar, Karnataka, India. Capacity 70 000 tonnes of dissolving pulp.
- Birla Lao Pulp and Plantation Limited in Laos. (Projected capacity of 200 000 tonnes of dissolving pulp).
- AV Terrace Bay, Ontario, Canada. (To be converted to dissolving pulp in the future, capacity of 408 250 tonnes).