GAIL Commissions 1.25 Million Tonne PTA Plant in Mangalore, Expanding India’s Petrochemical Manufacturing Capacity

Announced on 5 November 2026, the commissioning marks the successful revival of a major industrial asset located within the Mangalore Special Economic Zone (MSEZ). The facility was originally developed by JBF Petrochemicals Limited before being acquired by GAIL through the corporate insolvency resolution process in 2023.

Following the acquisition, GAIL undertook extensive refurbishment and technological restoration to bring the plant into operation. The commissioning represents an important expansion of the company’s downstream petrochemical business and contributes to India’s efforts to strengthen domestic manufacturing capabilities.

Revival of a Major Petrochemical Manufacturing Facility

The Mangalore PTA plant was originally established by JBF Petrochemicals Limited, which subsequently underwent insolvency proceedings following financial difficulties.

In 2023, GAIL acquired the company through the Corporate Insolvency Resolution Process under a resolution plan approved by the National Company Law Tribunal.

Following the acquisition, GAIL initiated a comprehensive programme to revive the industrial facility and prepare it for commercial operations. The restoration required substantial engineering work, technological interventions and operational improvements to address challenges associated with the previously stalled project.

The company also worked with technology partners, engineering consultants and contractors to restore critical production systems and ensure the facility could resume manufacturing operations.

In November 2024, GAIL renewed its engagement with international petrochemical technology company INEOS through an amended agreement to support the revival of the plant.

The successful commissioning in November 2026 completes an important phase of this industrial revival programme, transforming the previously distressed asset into an operational petrochemical manufacturing facility.

1.25 Million Tonnes of Annual PTA Manufacturing Capacity

The newly commissioned facility has an installed production capacity of 1.25 million tonnes of Purified Terephthalic Acid annually.

PTA is an important intermediate chemical used primarily in the production of polyester-based materials. It is manufactured from paraxylene through chemical processing and purification before being supplied to downstream industries.

One of its principal applications is the manufacture of polyester fibres and yarns, which are extensively used in the textile and apparel industries.

PTA is also a major raw material in the production of polyethylene terephthalate (PET) resin, which is widely used in packaging materials, beverage bottles and other consumer and industrial products.

The addition of 1.25 MTPA of domestic manufacturing capacity is expected to improve the availability of this important industrial chemical within India.

The facility will also support the country’s expanding polyester value chain by strengthening the supply of raw materials required by downstream manufacturers.

Supporting India’s Textile and Packaging Industries

India has a substantial textile and apparel manufacturing industry, with polyester-based materials playing an increasingly important role in domestic consumption and export-oriented production.

Polyester fibres are used in garments, home textiles, industrial fabrics and technical textiles. Their durability, versatility and relatively economical production make them important materials across several manufacturing sectors.

The packaging industry is another major consumer of PTA-derived products, particularly PET resin used for bottles, containers and specialised packaging applications.

As domestic demand for polyester and packaging materials expands, reliable access to PTA becomes increasingly important for maintaining production continuity and industrial competitiveness.

The commissioning of the Mangalore facility is expected to strengthen domestic supply chains and reduce dependence on imported raw materials.

Improved domestic availability can also benefit downstream manufacturers by providing an additional source of PTA within India.

Strategic Location Near New Mangalore Port

The plant’s location within the Mangalore Special Economic Zone provides important logistical advantages.

Situated near New Mangalore Port, the facility benefits from access to maritime transport infrastructure supporting the movement of industrial raw materials and finished products.

GAIL stated that the plant is supported by dedicated logistics infrastructure designed to facilitate efficient material handling and distribution.

Access to port infrastructure is particularly important for large petrochemical manufacturing facilities because their operations involve substantial volumes of feedstocks and finished products.

The location also provides connectivity to industrial markets within India and opportunities for participation in international petrochemical supply chains.

The facility strengthens the industrial significance of the Mangalore region, which has developed into an important centre for petroleum refining, petrochemicals and associated manufacturing activities.

GAIL to Market PTA Under G-Tex Brand

GAIL has announced that PTA produced at the Mangalore facility will be marketed under the brand name G-Tex.

The company intends to leverage its established marketing network and customer relationships to supply the product to manufacturers operating across India’s polyester and packaging industries.

The introduction of G-Tex provides GAIL with a dedicated product identity within the domestic PTA market.

The company’s existing experience in energy marketing, industrial customer engagement and large-scale infrastructure operations provides a foundation for developing its presence in this segment.

The marketing initiative also represents an important extension of GAIL’s business portfolio beyond natural gas transportation and distribution into a broader range of petrochemical products.

Expanding GAIL’s Downstream Petrochemical Business

The commissioning of the Mangalore facility is part of GAIL’s efforts to strengthen its position in India’s petrochemical industry.

Traditionally recognised for its natural gas transmission, processing and marketing activities, GAIL has progressively diversified into downstream manufacturing and associated industrial businesses.

The PTA project introduces additional manufacturing capabilities in a chemical segment closely connected with the textile, apparel and packaging industries.

Unlike natural gas infrastructure, which primarily supports energy supply and industrial fuel requirements, PTA manufacturing serves as an important link in the production of synthetic fibres and polymer-based materials.

The investment therefore broadens GAIL’s industrial participation while creating opportunities for integration with India’s expanding chemical and manufacturing sectors.

The successful revival of the facility also demonstrates the potential for public sector enterprises to restore distressed industrial assets and bring previously underutilised manufacturing infrastructure into productive use.

Strengthening India’s Petrochemical Self-Reliance

Domestic production of critical industrial chemicals is an important component of India’s efforts to strengthen manufacturing supply chains and reduce import dependence.

The polyester industry requires consistent access to PTA, and additional domestic production capacity can improve supply reliability for manufacturers.

GAIL stated that the Mangalore facility is expected to strengthen India’s domestic PTA manufacturing capacity, improve product availability and reduce the country’s dependence on imports.

The project also supports the broader development of downstream industries that transform petrochemical intermediates into finished consumer and industrial products.

By increasing domestic availability of PTA, the facility can contribute to the competitiveness of India’s textile, apparel, packaging and polyester manufacturing sectors.

The commissioning represents a significant achievement in the revival of industrial infrastructure and the expansion of indigenous petrochemical manufacturing capabilities.

A New Chapter in India’s Petrochemical Manufacturing

The successful commissioning of GAIL’s 1.25 MTPA PTA facility in Mangalore marks an important development in India’s downstream petrochemical sector.

The project brings a previously distressed industrial asset back into productive operation following its acquisition in 2023 and an extensive programme of technological restoration and refurbishment.

Its manufacturing capacity will strengthen the domestic availability of PTA, supporting important industries ranging from polyester textiles and apparel to packaging materials.

The facility’s strategic location near New Mangalore Port, together with GAIL’s established industrial and marketing network, provides a strong foundation for its integration into domestic petrochemical supply chains.

With the introduction of the G-Tex brand, GAIL is also expanding its presence in an important segment of the chemical manufacturing industry.

The Mangalore facility represents both a successful industrial revival and a major addition to India’s petrochemical manufacturing capacity, reinforcing the role of public sector enterprises in strengthening domestic production, supporting downstream industries and advancing industrial self-reliance.

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