India: MCPI, IOCL sign JV for ₹5,000-crore polyester project in Odisha

• 900 TPD integrated polyester facility planned at Bhadrak
• JV structure targets 300 KTA annual yarn capacity

MCPI Private Limited and Indian Oil Corporation Limited (IOCL) have signed a joint venture agreement to develop a ₹5,000-crore integrated polyester manufacturing facility at Bhadrak in Odisha, advancing IOCL’s diversification into textiles and strengthening India’s domestic polyester value chain.

The project will include a 900 tonnes-per-day (TPD) continuous polymerisation unit along with downstream facilities for fully drawn yarn (FDY), draw textured yarn (DTY) and polyester chips. IOCL’s annual report identifies the project as a 300 KTA yarn manufacturing facility.

Project moves towards implementation

The JV agreement follows IOCL Board approval in December 2024 and Government of India clearance in June 2026. The next step is formal incorporation of the joint venture, followed by project implementation.

IOCL had initially approved an investment of approximately ₹4,382 crore for the project in December 2024. The latest agreement puts the project investment at approximately ₹5,000 crore.

The JV was originally structured as a 50:50 partnership, with IOCL and MCPI each committing ₹657.33 crore in equity against the initial project cost. The current ₹5,000-crore project cost represents an increase from the original approved investment, while an updated equity structure has not been publicly disclosed.

Partnership combines petrochemical, polyester expertise

The project brings together IOCL’s petrochemical capabilities and MCPI’s polyester and textile manufacturing expertise.

For IOCL, the investment supports its strategy of increasing exposure to downstream petrochemicals and strengthening its presence in the polyester segment. MCPI’s experience in polyester manufacturing and its earlier FDY expansion at Surat is expected to support project execution.

Bhadrak adds regional manufacturing capacity

The facility is expected to create around 4,300 employment opportunities, according to reporting at the time of the project’s original approval.

The project also builds on Odisha’s efforts to develop textile manufacturing capacity around Bhadrak. MCPI has previously acknowledged support from the Odisha government for the project.

With the JV agreement signed, the project has moved beyond the approval stage towards execution. The 900 TPD polymerisation facility and downstream yarn and chip units are expected to add a substantial new polyester manufacturing base in eastern India.