Indian Oil Corporation Limited (IOC), synonymous with energy and innovation in India, has made a major foray into the textile manufacturing sector. In a landmark decision taken by its board of directors on December 20, 2024, the company announced approval to invest in a state-of-the-art yarn manufacturing project in Bhadrak, Odisha. This is a pivotal step in Indian Oil’s diversification strategy, in line with the growing synergies between the petrochemical and textile industries.
The project has an estimated investment of Rs 4,382.21 crore and is being pursued as a 50:50 joint venture with MCPI Pvt. Ltd. Indian Oil’s investment in this ambitious venture will be Rs 657.33 crore. The partnership underscores the company’s commitment to leveraging its expertise in petrochemistry for the production of high-quality textile intermediates.
State-of-the-art facility under construction
The upcoming yarn project will feature a 900 TPD (tonnes per day) continuous polymerization (CP) unit for producing drawn textured yarn (DTY), fully drawn yarn (FDY), and polyester chips. It will be equipped with advanced downstream units. These products are important components for the textile industry and are widely used in the production of apparel, home furnishings, and industrial textiles.
The facility will also include associated infrastructure to ensure seamless operations, with a focus on efficiency, sustainability and cutting-edge technology. Bhadrak, Odisha, was strategically chosen for this project to take advantage of its proximity to raw materials, existing industrial infrastructure and robust connectivity, making it a promising hub for textile manufacturing.
Strengthening India’s textile ecosystem
This investment reflects IOC’s vision to contribute to India’s fast-growing textile industry, which is a key pillar of the Indian economy. By integrating advanced polymerization technology and textile manufacturing, IOC aims to strengthen domestic production of polyester yarn, reduce import dependence and support the government’s ‘Make in India’ initiative.
The project also has the potential to create significant employment opportunities in the region, boost Odisha’s socio-economic development and enhance India’s position in the global textile market.
Collaboration with MCPI: Strategic Alliance
A joint venture with MCPI Pvt. Ltd. is known as a leader in polyester and textiles and brings complementary strengths. With MCPI’s expertise in the textile value chain and IndianOil’s advantages in petrochemical production, this partnership is poised to deliver world-class products that meet the evolving demands of the textile industry.
vision for the future
IOC’s entry into the textile manufacturing sector represents a strategic diversification of its business portfolio. This move is in line with the company’s long-term vision to leverage the potential of the petrochemical sector while contributing to India’s industrial and economic growth.
With this investment, Indian Oil Corporation reaffirms its commitment to innovation, sustainability and supporting India’s march towards self-reliance in key industrial sectors. The Bhadrak project is not just a milestone for IOC, but also a stepping stone in transforming India into a global textile manufacturing hub.
IOC’s bold move into the textile industry highlights the company’s forward-thinking approach and ability to adapt to a rapidly evolving industrial environment. As the Bhadrak project takes shape, it promises to increase India’s textile manufacturing capacity, create jobs and move India closer to its goal of becoming a $5 trillion economy.
This strategic investment is a testament to IOC’s unwavering commitment to driving innovation, strengthening the industry ecosystem and contributing to India’s socio-economic development.
