MCPI Private Limited and Indian Oil Corporation Limited (IOCL) have signed a Joint Venture (JV) Agreement to establish a Rs. 5,000-crore polyester manufacturing facility at Bhadrak, Odisha, marking a significant step towards strengthening India’s domestic polyester value chain and expanding manmade fibre manufacturing capacity in eastern India. 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, including approval by the IOCL Board in December 2024 and final clearance from the Government of India in June 2026. The project will combine IOCL’s petrochemical capabilities with MCPI’s expertise in polyester and textiles to create an integrated, technology-driven manufacturing platform. The facility will include a 900 tonnes-per-day (TPD) Continuous Polymerisation (CP) unit, along with downstream manufacturing facilities for Fully Drawn Yarn (FDY), Draw Textured Yarn (DTY) and polyester chips. These products are widely used in apparel, home textiles and industrial and technical textile applications. The Bhadrak project represents an advancement of IOCL’s original proposal announced in December 2024, when the company had outlined an investment of approximately Rs. 4,382 crore for establishing a textile manufacturing hub in Odisha. The latest JV agreement places the project investment at around Rs. 5,000 crore, reflecting the scale and progression of the initiative from initial planning to implementation. Bhadrak has been selected for its proximity to raw materials, industrial infrastructure and connectivity, giving the project strategic importance for the development of a stronger petrochemical and textile manufacturing ecosystem in eastern India. The integrated configuration, linking polymerisation with downstream yarn production, is expected to strengthen supplychain efficiency and create additional domestic capacity for polyester products. For IOCL, the project marks an important step in diversifying beyond its traditional energy business and leveraging its petrochemical strengths further downstream. Polyester is a major downstream application of petrochemical feedstocks, making the partnership a natural extension of IOCL’s petrochemical portfolio. MCPI, part of The Chatterjee Group (TCG), brings specialised expertise in polyester and textile manufacturing, complementing IOCL’s upstream capabilities. The project also comes at a time when strengthening domestic manufacturing across the textile value chain has assumed increasing importance. Polyester is among the world’s most widely used textile fibres and is critical to apparel, home textiles, and technical and industrial applications. Additional integrated capacity can support Indian textile manufacturers and reduce supply-chain dependencies while strengthening India’s position in man-made fibre-based textiles. MCPI has acknowledged the contribution and guidance of Dr. Purnendu Chatterjee, Chairman, The Chatterjee Group, in advancing the partnership and has expressed appreciation to IOCL for selecting MCPI as its partner. With the JV agreement now signed, the immediate next step is the formal incorporation of the joint venture, followed by project execution. The Bhadrak facility is expected to create employment and contribute to industrial development in Odisha while establishing a substantial new polyester manufacturing base. The project’s evolution—from the Rs. 4,382-crore proposal announced in 2024 to the Rs. 5,000-crore JV agreement in 2026—underscores its strategic significance. By bringing together petrochemical feedstocks, polymerisation and downstream polyester yarn production, the initiative could become an important building block for a more integrated and competitive Indian textile and man-made fibre ecosystem