Indian Oil Corporation Invests ₹4,382 Crore in Odisha Textile Hub.

Indian Oil Corporation Limited (IOC), India’s energy leader, has announced a major diversification into textile manufacturing. The company will invest ₹4,382 crore to establish a cutting-edge yarn production facility in Bhadrak, Odisha. This landmark decision, made during a board meeting on December 20, 2024, highlights IOC’s strategic shift toward leveraging its petrochemical expertise to bolster India’s textile sector.


Key Highlights of the Project

Investment and Collaboration

  • Total Investment: ₹4,382.21 crore.
  • Partnership: A 50:50 joint venture with MCPI Pvt. Ltd.
  • IOC’s Equity Contribution: ₹657.33 crore.

This collaboration combines IOC’s petrochemical dominance with MCPI’s textile manufacturing expertise to produce high-quality polyester intermediates.


State-of-the-Art Facility

  • Production Capacity: 900 tonnes per day (TPD).
  • Output: Draw Textured Yarn (DTY), Fully Drawn Yarn (FDY), and polyester chips.
  • Advanced Technology: Continuous Polymerization (CP) unit with downstream capabilities.

This facility will support the production of essential components for apparel, home furnishings, and industrial textiles, meeting domestic demand while reducing reliance on imports.


Strategic Location: Bhadrak, Odisha

Bhadrak offers several advantages:

  • Proximity to Raw Materials: Ensures cost-effective production.
  • Industrial Ecosystem: Access to existing infrastructure and skilled labor.
  • Connectivity: Strong transport and logistical networks.

The region will become a hub for textile manufacturing, enhancing India’s competitiveness in global markets.


Strengthening India’s Textile Sector

Indian Oil’s investment aligns with the government’s ‘Make in India’ initiative by:

  • Boosting domestic production of polyester yarn.
  • Reducing import dependency.
  • Creating thousands of direct and indirect jobs.

The project will also enhance India’s position in the global textile industry, driving socio-economic growth in Odisha.


Collaboration with MCPI Pvt. Ltd.

The partnership with MCPI, a renowned player in the polyester value chain, creates a robust foundation for success. This strategic alliance combines:

  • IOC’s Petrochemical Expertise: Innovation in polymerization technology.
  • MCPI’s Textile Knowledge: Market insights and production capabilities.

The joint venture will deliver world-class products, catering to the growing demands of the textile industry.


A Visionary Step Forward

IOC’s entry into textile manufacturing is part of its long-term strategy to:

  • Diversify its business portfolio.
  • Leverage its petrochemical vertical for industrial growth.
  • Contribute to India’s goal of becoming a $5 trillion economy.

Sustainability and Economic Impact

The Bhadrak project aligns with IOC’s commitment to sustainability by incorporating:

  • Energy-efficient technologies.
  • Environmentally responsible production methods.

It will generate substantial employment, promote industrialization in Odisha, and support India’s socio-economic development.


FAQs

What is the investment amount for the Bhadrak project?

The total investment is ₹4,382.21 crore, with IOC contributing ₹657.33 crore in equity.

What will the facility produce?

The facility will manufacture Draw Textured Yarn (DTY), Fully Drawn Yarn (FDY), and polyester chips, essential for textiles.

Why was Bhadrak, Odisha chosen?

Bhadrak offers proximity to raw materials, industrial infrastructure, and strong connectivity, making it an ideal location.

How does this align with the ‘Make in India’ initiative?

The project boosts domestic production, reduces import dependency, and creates jobs, supporting India’s self-reliance goals.

When will the project be operational?

The facility is expected to be operational by 2027.


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