Indian Oil Corp. Approves Rs 4,382 Crore Yarn Project In Odisha
Indian Oil Corporation (IOC), the state-owned company’s board approved an investment to establish a yarn project in Bhadrak, Odisha, in a 50:50 joint venture with MCPI Private Ltd.
The project will involve the construction of a 900 TPD continuous polymerisation (CP) unit, along with downstream facilities for draw textured yarn (DTY), fully drawn yarn (FDY), polyester chips and supporting infrastructure. IOC’s equity contribution to the joint venture is set at Rs 657.33 crore.
In a regulatory filing, Indian Oil stated, “The board, at its meeting held on December 20, 2024, has granted investment approval for the yarn project at Bhadrak (Odisha), estimated at Rs 4,382.21 crore through a 50:50 joint venture with MCPI Pvt. Ltd.”
The announcement comes amid weak financial results for the July-September quarter. Indian Oil posted a standalone net profit of Rs 180 crore, significantly lower than the market estimate of Rs 3,278 crore. The company’s quarterly revenue was Rs 1.74 lakh crore, missing the projected Rs 1.9 lakh crore and down 10% sequentially. EBITDA fell 56% quarter-on-quarter to Rs 3,773 crore, well below the expected Rs 11,119 crore. Indian Oil’s EBITDA margin contracted by 230 basis points to 2.2%, falling short of the anticipated 6% expansion.
