IMFA acquires Tata Steel’s Kalinganagar ferro chrome plant for Rs 707 crore

Indian Metals & Ferro Alloys Ltd (IMFA), India’s largest fully integrated producer of value-added ferro chrome, has completed the acquisition of Tata Steel Ltd’s ferro chrome plant at Kalinganagar in Odisha’s Jajpur district for Rs 707.26 crore.

The transaction includes a base consideration of Rs 610 crore along with applicable GST and adjustments for net working capital. IMFA financed the entire acquisition through internal accruals.

Expansion at Kalinganagar

Spread over 115 acres at Kalinganagar, the newly acquired facility houses four furnaces with a combined production capacity of 1 lakh tonnes per annum (TPA). The capacity is expected to increase to 1.5 lakh TPA once the partially constructed fifth furnace becomes operational within the next year.

The acquisition significantly strengthens IMFA’s production footprint in Odisha, a key hub for ferro chrome manufacturing in India.

Strengthening Market Position

IMFA Managing Director Subhrakant Panda described the acquisition as a landmark step in the company’s expansion strategy. He stated that the addition of the Kalinganagar plant, along with the company’s ongoing greenfield project, reinforces IMFA’s position as India’s largest ferro chrome producer and places it among leading global players in the sector.

Panda emphasized that the company will focus on seamless integration of the newly acquired facility to unlock operational efficiencies and generate long-term value for stakeholders. He further reiterated IMFA’s commitment to responsible and sustainable growth in the ferro chrome industry.

Capacity to Reach 5.34 Lakh TPA

The company stated that upon commissioning its greenfield ferro chrome project, total furnace capacity will reach 355 MVA, equivalent to 5.34 lakh tonnes per annum (TPA).

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IMFA plans to meet the entire chrome ore requirement for its expanded smelting operations from its captive mines. The company also intends to supplement its power needs through hybrid renewable energy sources as part of its sustainability strategy.

With this acquisition, IMFA consolidates its presence in Odisha’s industrial landscape while strengthening its leadership in the ferro chrome sector.