Indian Oil Approves ₹4,382 Crore Yarn Project in Odisha

Indian Oil Corporation Ltd (IOCL), the state-owned company has approved an investment of ₹4,382.21 crore for setting up a yarn manufacturing project in Bhadrak, Odisha. This project will be executed as a 50:50 joint venture with MCPI Private Ltd. The announcement was made following a board meeting held on December 20, 2024.

What’s the Plan?

At the heart of the project is a 900 Tonne Per Day (TPD) continuous polymerisation (CP) unit. Alongside, there will be downstream facilities for drawing textured yarn (DTY), fully drawn yarn (FDY), polyester chips, and essential infrastructure to support operations. Indian Oil will contribute ₹657.33 crore in equity to this joint venture.

The facility is set to come up at the Bhandaripokhari textile park in Bhadrak district, an area to watch because of the scale and scope of this initiative. The project is expected to create jobs for around 4,300 people, adding a boost to local employment.

A Year in the Making

This announcement follows the state government’s nod last year to establish a polyester product manufacturing unit in the region. Odisha Chief Minister Mohan Majhi welcomed Indian Oil’s commitment to the project, acknowledging its role in driving economic activity in the state.

Indian Oil Chairman Arvinder Singh Sahney had similar sentiments, highlighting the collaboration with MCPI Private Ltd. He described the project as an important chapter in Odisha’s industrial growth.

Indian Oil’s Numbers

On the financial side, Indian Oil’s July-September 2024 quarter results showed some challenges. The company posted a standalone net profit of ₹180 crore, falling short of market expectations of ₹3,278 crore. Revenue for the quarter came in at ₹1.74 lakh crore, down 10% sequentially, while EBITDA dropped 56% to ₹3,773 crore.

Despite these figures, Indian Oil’s shares, as of 9:50 AM today, were trading at ₹138.40, up by ₹1.25 or 1%, with a year-to-date gain of 6.14% and an 8.00% increase over the past year.

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