Indian Oil Corporation Limited (IOC), a name synonymous with energy and innovation in India, has made a significant foray into the textile manufacturing sector. In a landmark decision during its board meeting on December 20, 2024, the company announced an investment approval for a state-of-the-art yarn manufacturing project in Bhadrak, Odisha. This marks a pivotal step in Indian Oil’s diversification strategy, aligning with the growing synergy between petrochemicals and the textile industry.
The project, with an estimated investment of ₹4,382.21 crore, is being undertaken as a 50:50 joint venture with MCPI Pvt. Ltd. Indian Oil’s equity contribution to this ambitious venture will be ₹657.33 crore. This collaboration underscores the company’s commitment to leveraging its expertise in petrochemicals for the production of high-quality textile intermediates.
A Cutting-Edge Facility in the Making
The upcoming yarn project will feature a 900 TPD (Tonnes Per Day) Continuous Polymerization (CP) unit, equipped with advanced downstream units for manufacturing Draw Textured Yarn (DTY), Fully Drawn Yarn (FDY), and polyester chips. These products are vital components in the textile industry, 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 leverage 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 of contributing to India’s burgeoning textile industry, which is a critical pillar of the country’s economy. By integrating advanced polymerization technology with textile manufacturing, IOC aims to enhance domestic production of polyester yarns, reducing dependency on imports and supporting the government’s ‘Make in India’ initiative.
The project also holds the potential to create significant employment opportunities in the region, driving socio-economic development in Odisha and boosting India’s position in the global textile market.
Collaboration with MCPI: A Strategic Alliance
The joint venture with MCPI Pvt. Ltd., a recognized leader in polyester and textiles, brings complementary strengths to the table. With MCPI’s expertise in the textile value chain and Indian Oil’s dominance in petrochemical production, the collaboration is poised to deliver world-class products that meet the evolving demands of the textile industry.
A Vision for the Future
IOC’s entry into the textile manufacturing domain signifies a strategic diversification of its business portfolio. This move aligns with the company’s long-term vision of harnessing the potential of its petrochemical vertical 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 towards transforming India into a global textile manufacturing hub.
IOC’s bold venture into the textile industry underscores the company’s forward-thinking approach and adaptability in a rapidly evolving industrial landscape. As the Bhadrak project takes shape, it promises to elevate India’s textile manufacturing capabilities, create jobs, and drive the nation closer to its goal of becoming a $5 trillion economy.
This strategic investment serves as a testament to IOC’s unwavering commitment to driving innovation, strengthening industry ecosystems, and contributing to the socio-economic development of India.