IMFA to become India’s leading ferro chrome producer following acquisition of Tata Steel’s Kalinganagar plant

• IMFA set to become 6th largest ferro chrome producer globally
• IMFA’s ferro chrome capacity expected to cross 0.5 mnt/year 

Indian Metals and Ferro Alloys Ltd (IMFA), India’s leading fully integrated ferro alloys producer, has announced the acquisition of Tata Steel Limited’s ferro chrome plant in Kalinganagar, Odisha. The deal, valued at INR 610 crore and fully financed from internal accruals, adds 99 megavolt-ampere (MVA) furnace capacity — 66 MVA existing and 33 MVA under construction — positioning IMFA as India’s largest ferro chrome producer and the sixth largest globally, with over 0.5 million tonnes (mnt) of total annual capacity.

Spread over 115 acres, the facility currently houses four furnaces producing 100,000 tonnes (t) per annum. With the commissioning of the fifth furnace, output will rise to 150,000 t/year. The plant’s proximity to IMFA’s captive chrome ore mines and the company’s upcoming greenfield expansion project is expected to generate significant cost savings and operational synergies. The transaction is expected to close within three months, subject to regulatory approvals.

IMFA currently operates six furnaces, adding up to 190 MVA, with an annual production capacity of 284,000 t at three sites in Odisha, India. Two of these sites are fully functioning townships with all the facilities on the ground. The third facility is coming up in Kalinga Nagar with a capacity of 100,000 t, and phase 1 is expected to be completed by 2026.

Commenting on the acquisition, Subhrakant Panda, Managing Director of IMFA, said, “This transformational acquisition fast-tracks our expansion plans and will increase our market share, especially in domestic sales, amid growing demand for ferro chrome, driven by India’s rapid economic growth. The acquisition, funded entirely from internal accruals, underscores the strength of our balance sheet and commitment to creating stakeholder value.”

India’s ferro chrome production registered a slight decline of 1% in FY’25, reaching 1.35 mnt compared to 1.36 mnt in FY’24. IMFA’s share in India’s ferro chrome production was about 20%, which is likely to increase in the near term.