Aditya Birla group said on Monday it has acquired Swedish specialty pulp maker Domsjo Fabriker for $340 million, boosting the captive raw material supply for its viscose staple fibre (VSF) business.

The diversified group said its group companies Thai Rayon Public Company Limited (Thailand) and Indo Bharat Rayon (Indonesia) have acquired the stake from a Swedish consortium.

"This acquisition is in line with our strategy of having a substantive part of our speciality pulp for our consumption through our captive source," K. K. Maheshwari, head of the group's pulp and fibre business, said in a statement.

The Aditya Birla group is the world's largest producer of VSF, with a 24 percent global share. Most of the capacity is operated out of group firm Grasim Industries.

Domsjo currently operates a pulp capacity of 210,000 tonnes a year, but has in place an investment plan to raise capacity to 255,000 tonnes by 2012.

Specialty pulp produced by Domsjo is mainly used as raw material for viscose staple fibre and viscose filament yarn, which in turn are used to make garments.

About a quarter of Domsjo's output is used in premium applications, such as binding agents for medical products, and in casings for the food industry, the group said in a statement.