The board of a state-owned oil corporation has given its approval for an investment to establish a yarn project at Bhadrak, Odisha. This project will be developed in a 50:50 joint venture with MCPI Private Ltd., aiming to enhance the company’s presence in the textile sector and contribute to regional economic growth.
Price Movement
In Monday’s trading session, the share price of Indian Oil Corporation Ltd reached an intra-day high of Rs.139.80 per share, rising 2 percent from its previous close of Rs.137.08 per share. However, the stock declined later to Rs.138.45 each.
What happened
Indian Oil Corporation Ltd (IOCL) has approved an investment for setting up a yarn project in Bhadrak, Odisha, in a 50:50 joint venture with MCPI Private Ltd.
The Rs.4,382.21 crore project will include a 900 TPD continuous polymerization (CP) unit, along with downstream units for draw textured yarn (DTY), fully drawn yarn (FDY), polyester chips, and associated facilities. IOCL’s equity contribution to the joint venture will be Rs.657.33 crore.
Business Overview
IndianOil operates across a comprehensive hydrocarbon value chain, encompassing several key segments. Its refining operations involve processing crude oil into a variety of petroleum products.
The company’s marketing network includes over 37,500 fuel stations, distributing fuels across India. IndianOil also manages an extensive pipeline network exceeding 20,000 km, facilitating the transportation of crude oil and finished products.
In addition to exploration and production activities for oil and natural gas, the company manufactures a range of petrochemical products, with a production capacity close to 3,200 KTA.
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International Footprints
IOCL has expanded its footprint internationally with subsidiaries in countries such as Sri Lanka (Lanka IOC), Mauritius (IndianOil Mauritius Ltd.), and various regions across the Middle East, Europe, and North America.
This global presence aligns with its strategy to expand downstream operations while continuing to strengthen its position in the domestic market.
Financial Performance
Turning towards the financials of the company, Indian Oil Corporation Ltd reported Q2 FY25 revenue of Rs.1,74,976 crore, reduced by 2.3 percent from Rs.1,79,246 crore in the same quarter last year. Profit After Tax (PAT) decreased substantially by 97 percent to a net loss of Rs.449 crore, from a net profit of Rs.13,713 crore in the same period.
Company Profile
Indian Oil Corporation Limited (IOCL), the largest integrated oil and gas company in India, is fully owned by the Government of India. Founded in 1964, IOCL engages in the entire hydrocarbon value chain, encompassing refining, pipeline transportation, marketing, and the exploration of petroleum and natural gas.
Written by – Siddesh S Raskar
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