Landmark partnership paves the way for a 900 TPD integrated polyester facility at Bhadrak, strengthening India’s domestic polyester ecosystem and advancing IOCL’s diversification into textiles
MCPI Private Limited and Indian Oil Corporation Limited (IOCL) have signed a Joint Venture (JV) Agreement to establish a ₹5,000-crore polyester yarn manufacturing facility at Bhadrak in Odisha, marking a significant milestone in the development of India’s domestic polyester value chain.
The agreement was signed at IOCL’s Refinery Headquarters by Mr. Debi Prasad Patra, Managing Director & CEO, MCPI, and Mr. S.K. Papneja, Executive Director, on behalf of IOCL.
The signing marks the culmination of more than a year of strategic collaboration between the two companies. The partnership follows the approval of the IOCL Board in December 2024 and final clearance from the Government of India in June 2026, paving the way for the formal creation of the joint venture and implementation of the project.
The project brings together the complementary strengths of IOCL’s petrochemical capabilities and MCPI’s expertise in polyester and textiles, with the objective of creating a large-scale, technology-driven polyester manufacturing platform in Odisha.
900 TPD Continuous Polymerisation Facility
At the heart of the project will be a 900 tonnes-per-day (TPD) Continuous Polymerisation (CP) unit, supported by downstream manufacturing facilities for Fully Drawn Yarn (FDY), Draw Textured Yarn (DTY) and polyester chips.
These products are key building blocks for the textile industry and find applications across apparel, home textiles and industrial textiles.
The integrated configuration will enable the facility to manufacture polyester products across different stages of the value chain, combining polymerisation with downstream yarn production. The project is therefore expected to create a significant new manufacturing base for polyester yarn in eastern India.
The next immediate step will be the formal incorporation of the joint venture, followed by project implementation.
From December 2024 Announcement to JV Signing
The latest agreement represents a major progression from the project announced by Indian Oil in December 2024.
At that time, IOCL had announced an investment of approximately ₹4,382 crore for establishing a textile manufacturing hub at Bhadrak, Odisha. The project was positioned as part of IOCL’s broader diversification strategy, leveraging its expertise in petrochemicals to move into textile manufacturing and strengthen the connection between the petrochemical and textile sectors.
The original project plan envisaged a 900 TPD Continuous Polymerisation unit, together with downstream units for manufacturing DTY, FDY and polyester chips. Associated infrastructure was also planned to support efficient and sustainable operations.
The latest JV agreement puts this strategic vision into a more advanced stage, with the project investment now stated at approximately ₹5,000 crore.
The progression from the initial announcement to the signing of the JV agreement underscores the sustained commitment of both partners to the project.
Strategic Location at Bhadrak
Bhadrak was selected as the location for the project based on its proximity to raw materials, existing industrial infrastructure and connectivity.
The location also gives the project strategic relevance for the development of manufacturing capacity in eastern India. By establishing a large-scale polyester facility in Odisha, the partnership can contribute to the emergence of a stronger textile and petrochemical manufacturing ecosystem in the region.
The project is expected to generate employment opportunities and contribute to industrial development in Odisha, while creating a new manufacturing base for polyester products.
IOCL’s Entry into Textile Manufacturing
For IOCL, the project represents an important step in the company’s diversification beyond its traditional energy business.
The petrochemical industry and polyester manufacturing are closely interconnected, with polyester being one of the major downstream applications of petrochemical feedstocks. The Bhadrak project allows IOCL to leverage its existing strengths in petrochemicals while moving further downstream into textile materials.
The company’s December 2024 announcement described the project as part of its strategy to harness the potential of its petrochemical vertical while contributing to India’s industrial and economic development.
The JV with MCPI provides IOCL with a partner that brings specialised knowledge of polyester manufacturing and the textile value chain.
MCPI Brings Textile and Polyester Expertise
MCPI, part of The Chatterjee Group (TCG), brings extensive experience in polyester and textile manufacturing to the partnership.
The company’s expertise complements IOCL’s strengths in petrochemicals, creating an integrated combination of upstream feedstock capabilities and downstream textile manufacturing.
The partnership is expected to enable the development of world-class polyester products capable of meeting the evolving requirements of domestic and international textile manufacturers.
The role of Dr. Purnendu Chatterjee, Chairman of The Chatterjee Group, has also been acknowledged by MCPI. The company has credited his vision and hands-on guidance as instrumental in bringing the strategic partnership to fruition.
MCPI has also expressed its appreciation to the leadership of IOCL for selecting the company as its partner for the project.
Strengthening India’s Polyester Ecosystem
The Bhadrak project comes at a time when strengthening domestic manufacturing capabilities across the textile value chain has become increasingly important.
Polyester is one of the world’s most widely used textile fibres and plays a critical role in apparel, home textiles and technical and industrial textile applications. Establishing additional domestic capacity in polymerisation and polyester yarn can contribute to a more integrated Indian textile ecosystem.
The project’s combination of polymerisation, FDY, DTY and polyester-chip production is particularly significant because it connects petrochemical inputs with textile manufacturing within a single manufacturing platform.
This integration can potentially improve supply-chain efficiency while supporting the availability of polyester products for India’s growing textile industry.
The project also aligns with the broader national emphasis on self-reliance, domestic manufacturing and strengthening India’s position as a global textile manufacturing hub.
A Larger Role for Polyester in India’s Textile Growth
India’s textile industry has traditionally had strong capabilities across cotton and other natural fibres, but man-made fibres such as polyester are increasingly important to the global textile economy.
The Bhadrak investment therefore has significance beyond the individual companies involved. It represents an expansion of manufacturing capacity in a fibre segment that is essential to the future growth of apparel, home textiles and industrial textiles.
The availability of integrated polyester manufacturing capacity can also support Indian textile manufacturers as they respond to changing global sourcing patterns and increasing demand for man-made fibre-based products.
Looking Ahead
With the JV agreement now signed, the project is moving from the approval and planning stage towards implementation.
The immediate priority will be the formal incorporation of the JV and commencement of project execution. The planned 900 TPD CP facility, along with FDY, DTY and polyester-chip manufacturing, will create a substantial new polyester manufacturing platform at Bhadrak.
The evolution of the project—from the ₹4,382-crore investment announcement in December 2024 to the ₹5,000-crore JV agreement signed in 2026—reflects the scale and strategic importance of the initiative.
For IOCL, it represents a significant step in leveraging its petrochemical strengths to build a presence in textile manufacturing. For MCPI, it provides an opportunity to expand its polyester manufacturing footprint in partnership with one of India’s largest industrial enterprises.
More broadly, the project could become an important building block in India’s ambition to develop a stronger, more integrated and self-reliant polyester and textile manufacturing ecosystem.
With the JV agreement now formally signed, MCPI and IOCL have moved the Bhadrak project from strategic intent to implementation, setting the stage for one of India’s significant new investments in polyester manufacturing.
