Indian Oil Sharpens Petrochemical Focus with ₹24,000 Crore Gujarat Investment

Vadodara's Indian Oil Corporation (IOC) Gujarat Refinery is channeling ₹24,000 crore into a strategic diversification into the petrochemicals sector, with plans to commission two new petrochemical units in 2025.

Biplob Biswas, Executive Director and refinery head, emphasized the urgency of this move given the evolving energy landscape. "The energy landscape is changing very quickly in our country. In order to remain future-ready we are diversifying into petrochemical projects. It is expected that fuel demand will go down in 10-15 years, and to enable IOC to survive we need to diversify into petrochemicals and other sectors," Biswas stated recently.

Currently, the refinery produces Linear Alkyl Benzene (LAB), a key ingredient in soaps and detergents, and small quantities of Sulphur Bentonite. Biswas announced the imminent expansion into new product lines: "From this year onwards we will start manufacturing Polypropylene and Butyl Acrylate, a base material for the paint industry." This expansion includes a 500 KPTA (Kilotonnes per annum) polypropylene plant and a 150 KPTA Butyl Acrylate unit being established near Vadodara. Furthermore, the refinery's LAB production capacity has been upgraded from 120 KPTA to 162 KPTA.