Indian Oil Corporation Limited and MCPI Private Limited have signed a joint venture to develop a ₹5,000 crore integrated polyester manufacturing complex in Bhadrak, Odisha, marking a significant expansion into higher-value petrochemicals and synthetic fibres.
Indian Oil Corporation Limited and MCPI Private Limited have signed a joint venture agreement to build an integrated polyester manufacturing complex in Bhadrak, Odisha, marking a fresh push by the state-owned refiner into higher-value petrochemicals and synthetic fibres. The project, valued at about ₹5,000 crore, will be split evenly between the two partners and is designed to anchor a new polyester production base in eastern India, according to company statements and industry reports.
The planned facility will centre on a 900-tonne-a-day continuous polymerisation unit, supported by downstream plants making fully drawn yarn, draw textured yarn and polyester chips. MCPI said the agreement was signed at IOCL’s refinery headquarters and follows more than a year of collaboration, including approval from IOCL’s board in December 2024 and final clearance from the Government of India in June 2026.
The project’s scale is larger than an earlier estimate of ₹4,382.21 crore cited when the venture was first outlined, suggesting the partners have expanded the investment as the plan has moved towards execution. MCPI has said the next steps are formal incorporation of the joint venture and immediate implementation of the project, underlining that the deal has now moved beyond planning and into the execution phase.
For Indian Oil, the Bhadrak project fits a broader strategy of widening its business beyond refining and fuel retail into chemicals and materials, an area the company has identified as key to lifting petrochemical intensity in the years ahead. For Odisha, the investment adds another industrial anchor to Bhadrak and could strengthen the domestic polyester supply chain by bringing more of the production process closer to raw materials and downstream users.
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