Balasore Alloys, a major Ferro Chrome producer in India, is set to acquire Rohit Ferro-Tech’s Jajpur (Odisha) unit, which has a production capacity of 102,530 MT pa, according to industry sources.
Balasore Alloys is aiming to ramp up its production capacity to 250,000 MT pa by the end of FY15. Balasore Alloys, formerly known as Ispat Alloys Limited, is a part of the renowned Ispat group of companies. The company has captive Chromite ore mines in Sukinda Valley at Jajpur (Odisha). The mines take care of Chrome ore requirement of the company. Balasore Alloys is one of the very few Ferro Alloys manufacturing companies in the country having captive mines and this is a major competitive advantage since availability of Chrome ore is very uncertain and the price is also exorbitant.
SteelMint assessed that Ferro chrome business is going through a consolidation phase and it is very difficult for a Ferro chrome business to be viable without having the support of captive Chrome ore mines or captive power. At least one of the two is significantly essential.
Disclaimer: No official confirmation from either of the companies.
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