Austria-based fibre firm Lenzing is lining up for a sale to India's Aditya Birla Group, according to press reports.

It has been said that Lenzing, which has a global presence in the cellulose fibre market, could fetch up to US$2bn - leading to the biggest-ever stake purchase by an Indian textile company.

Lenzing's head of corporate communications, Angelika Guldt, told just-style the company could not comment on the reports.

The company reported a 14.9% increase in turnover for the first half of this year but said "unfavourable currency discrepancies" hampered profit. Its sales totalled $1.2bn last year.

Lenzing, which is opening a Mumbai office this year, is said to be optimistic about the potential for its business in India, and is thought to be mulling production operations to rival that of Indian fibre giant Grasim.