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IMFA has signed binding agreements to acquire Tata Steel's ferro-chrome plant in Kalinganagar, Odisha, for INR 610 crore, marking a major expansion in its production capacity. The plant, with 99 MVA of furnace capacity (66 MVA operational and 33 MVA under construction), will raise IMFA's total capacity above 0.5 million tonnes per annum, making it India's largest and the world's sixth-largest ferro-chrome producer. Covering 115 acres, the facility will reach 150,000 tonnes annual output once a fifth furnace is commissioned.
IMFA has entered into binding agreements to acquire Tata Steel's ferro-chrome plant in Kalinganagar, Odisha, at a base price of INR 610 crore. The acquisition brings with it 99 MVA of furnace capacity 66 MVA already in operation and 33 MVA under construction which takes IMFA's total installed capacity beyond 0.5 million tonnes per annum. With this transaction, IMFA becomes India's largest ferro-chrome producer and ranks as the world's sixth-largest. Advertisement
The facility covers 115 acres and currently includes four furnaces capable of producing around 100,000 tonnes per year; IMFA expects output to rise to 150,000 tonnes when a fifth furnace is commissioned. Since the plant is in close proximity to IMFA's captive chrome-ore mining operations, the company anticipates cost savings and operational synergies from the acquisition.
The company stated the transaction is subject to regulatory approvals and is likely to conclude within approximately three months. IMFA's Managing Director, Subhrakant Panda, described the deal as transformational, saying it will speed up the company's expansion and strengthen its domestic market position amid rising demand for ferro-chrome. He noted the deal will be funded through internal accruals, highlighting the company's financial strength.
Separately, IMFA reported its net profit in the quarter fell to INR 98.77 crore from INR 125.72 crore in the same period last year. Panda noted that ferro-chrome prices rose noticeably towards the end of the quarter due to elevated chrome-ore costs for non-integrated producers and sharply reduced output in South Africa, with full impact expected in the current quarter.
Source PTI
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