Indian Metals & Ferro Alloys Limited (IMFA), a fully integrated ferro alloys producer headquartered in Bhubaneswar, Odisha, has signed definitive agreements to acquire Tata Steel Limited’s ferro chrome plant in Kalinganagar for a base purchase consideration of INR 6.1 billion. The transaction, which will be financed entirely from internal accruals, is expected to close within three months.
The acquisition includes a 99 MVA furnace capacity — comprising a 66 MVA operational unit with an annual output of 100,000 tonnes and a 33 MVA furnace under construction capable of producing an additional 50,000 tonnes per annum. The facility, spread across 115 acres, will take IMFA’s total installed capacity beyond 0.5 million tonnes per annum, positioning it as India’s largest ferro chrome producer and the sixth largest globally.
The Kalinganagar facility’s proximity to IMFA’s captive chrome ore mines and its upcoming greenfield expansion project is expected to yield significant cost and operational efficiencies. Upon completion of ongoing projects, the company anticipates combined production of approximately 400,000 tonnes in FY2027, scaling up to about 475,000 tonnes in FY2028.
“I am delighted to announce this transformational acquisition which will fast track our expansion plans,” said Subhrakant Panda, Managing Director, IMFA. “Along with our ongoing greenfield expansion, it will take total installed capacity beyond 0.5 million tonnes enabling us to increase our market share with a particular focus on domestic sales at a time when demand for ferro chrome is increasing due to India’s rapid economic growth,” he added.
Panda further stated that the acquisition would be funded entirely from internal accruals, underscoring the company’s strong balance sheet. “We are committed to creating value for stakeholders and will work to realise cost savings and operational synergies which will have a positive impact on the bottom line,” he said.
At its board meeting, IMFA also approved its unaudited financial results for the second quarter of FY2026 and declared an interim dividend of 50 percent, or INR 5 per share. For the quarter ended 30 September 2025, the company reported standalone revenue of INR 7.19 billion, up from INR 6.42 billion in the previous quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at INR 1.38 billion, representing a margin of 19.25 percent, while profit after tax (PAT) was INR 987.7 million with a margin of 13.74 percent.
Exports during the quarter amounted to INR 6.04 billion. Panda noted that ferro chrome prices improved towards the end of the quarter due to elevated chrome ore costs for non-integrated producers and a production cutback in South Africa, and said IMFA expects to see the full benefit reflected in the current quarter.
Founded in 1961, Indian Metals & Ferro Alloys Limited operates manufacturing complexes in Therubali and Choudwar, backed by captive power generation of 204.5 MW, including solar capacity. The company also owns chrome ore mines in Sukinda and Mahagiri and maintains ISO 9001 certification for quality management.
