MCPI and IOCL Join Hands for ₹5,000-Crore Polyester Manufacturing Project in Odisha
MCPI Private Limited and Indian Oil Corporation Limited (IOCL) have signed a Joint Venture (JV) Agreement to develop a ₹5,000-crore polyester manufacturing facility at Bhadrak in Odisha, marking a major step towards strengthening India’s domestic polyester and textile value chain.
The agreement was signed at IOCL’s Refinery Headquarters by Debi Prasad Patra, Managing Director & CEO, MCPI, and S.K. Papneja, Executive Director, IOCL.
The signing follows more than a year of strategic collaboration between the two companies. IOCL’s Board approved the project in December 2024, while the Government of India granted its final clearance in June 2026, paving the way for the formal establishment of the JV and implementation of the project.
The partnership combines IOCL’s petrochemical capabilities with MCPI’s expertise in polyester and textile manufacturing, with the aim of establishing a large-scale, technology-driven polyester production platform in eastern India.
900 TPD Continuous Polymerisation Facility
The proposed facility will include a 900 tonnes-per-day (TPD) Continuous Polymerisation (CP) unit, supported by downstream production facilities for Fully Drawn Yarn (FDY), Draw Textured Yarn (DTY) and polyester chips.
These products are widely used across apparel, home textiles, technical textiles and industrial applications.
By integrating polymerisation with downstream yarn manufacturing, the project will cover multiple stages of the polyester value chain within a single manufacturing platform. This is expected to create a significant new production base for polyester yarn in eastern India.
The next immediate step will be the formal incorporation of the joint venture, followed by project execution.
From ₹4,382 Crore Announcement to ₹5,000-Crore JV
The latest agreement builds on IOCL’s announcement in December 2024, when the company unveiled plans to invest approximately ₹4,382 crore in a textile manufacturing hub at Bhadrak.
The project formed part of IOCL’s broader diversification strategy, aimed at leveraging its petrochemical expertise to move further downstream into textile manufacturing.
The original proposal included a 900 TPD Continuous Polymerisation unit, along with manufacturing facilities for DTY, FDY and polyester chips and associated infrastructure.
With the latest JV agreement, the planned investment has increased to approximately ₹5,000 crore, taking the project into a more advanced stage of development.
Bhadrak Offers Strategic Advantages
Bhadrak was selected for the project because of its access to raw materials, industrial infrastructure and connectivity.
The location also gives the investment wider significance for eastern India, where the project could contribute to the development of a stronger textile and petrochemical manufacturing ecosystem.
The new facility is expected to support industrial development in Odisha, generate employment and establish additional domestic capacity for polyester products.
IOCL Expands into Textile Manufacturing
For IOCL, the project represents an important move beyond its traditional energy operations.
Polyester manufacturing is closely linked to the petrochemical industry, with petrochemical feedstocks serving as essential inputs for synthetic fibres. The Bhadrak project will allow IOCL to leverage its existing petrochemical strengths while expanding further downstream into textile materials.
The partnership with MCPI also gives IOCL access to specialised expertise in polyester manufacturing and the wider textile value chain.
MCPI Brings Polyester Expertise
MCPI, part of The Chatterjee Group (TCG), brings significant experience in polyester and textile manufacturing to the partnership.
Its technical and manufacturing expertise complements IOCL’s upstream petrochemical capabilities, creating an integrated model connecting petrochemical inputs with downstream polyester production.
The partnership is expected to support the manufacture of high-quality polyester products for both domestic and international textile markets.
MCPI has also credited Dr. Purnendu Chatterjee, Chairman of The Chatterjee Group, for his vision and guidance in bringing the strategic partnership to fruition.
Strengthening India’s Polyester Value Chain
The Bhadrak project comes as India continues to focus on strengthening domestic manufacturing across the textile value chain.
Polyester is one of the world’s most widely used synthetic fibres and plays a major role in apparel, home textiles, technical textiles and industrial applications.
The integration of polymerisation, FDY, DTY and polyester-chip production will connect petrochemical inputs with downstream textile manufacturing within a single production ecosystem.
Such integration could support supply-chain efficiency and improve the availability of polyester products for Indian textile manufacturers.
The project also supports the broader objectives of strengthening domestic manufacturing, reducing supply-chain dependence and positioning India as a competitive global textile manufacturing hub.
Boosting Man-Made Fibre Manufacturing
India has traditionally maintained strong capabilities in cotton and other natural fibres, while man-made fibres such as polyester have become increasingly important in global textile production.
The Bhadrak investment could therefore have significance beyond MCPI and IOCL, adding capacity in a fibre segment that is central to the future growth of apparel, home textiles and industrial applications.
Additional integrated polyester capacity could help Indian manufacturers respond to changing global sourcing patterns and growing demand for man-made fibre-based products.
Project Moves Towards Implementation
With the JV agreement signed, the Bhadrak project is moving from the approval and planning phase towards implementation.
The immediate focus will be on incorporating the joint venture and beginning project execution. Once completed, the planned 900 TPD Continuous Polymerisation facility, together with FDY, DTY and polyester-chip manufacturing units, will establish a substantial new polyester manufacturing platform in Odisha.
The project’s evolution—from the ₹4,382-crore investment announcement in December 2024 to the ₹5,000-crore JV agreement in 2026—highlights the scale and strategic importance of the initiative.
For IOCL, the project represents a major step in using its petrochemical capabilities to establish a stronger presence in textile manufacturing. For MCPI, it provides an opportunity to expand its polyester manufacturing footprint through a strategic partnership with one of India’s largest industrial companies.
More broadly, the Bhadrak project could become an important addition to India’s efforts to build a stronger, integrated and self-reliant polyester and textile manufacturing ecosystem.