IMFA Expands with Strategic Acquisition of Tata Steel's Ferro Chrome Plant

Indian Metals & Ferro Alloys Ltd (IMFA) will acquire Tata Steel's ferro chrome plant in Kalinganagar for Rs 610 crore, boosting production capacity. This strategic move enhances IMFA's market share and operational efficiency, amidst rising domestic demand for ferro chrome driven by India's economic growth.

Indian Metals & Ferro Alloys Ltd (IMFA), India's top producer of ferro alloys, has agreed to acquire Tata Steel Limited's ferro chrome plant in Kalinganagar, Odisha, for Rs 610 crore. This acquisition will add significant furnace capacity, raising IMFA's total to over 0.5 million tonnes annually.

The Kalinganagar facility spans 115 acres and includes four furnaces, with the potential to produce 150,000 tonnes annually after the completion of a new furnace. The plant's strategic location near IMFA's chrome ore mines and forthcoming projects promises cost efficiencies and synergies.

IMFA Managing Director, Subhrakant Panda, emphasized the acquisition's transformative impact, boosting domestic sales amid strong demand. Financed through internal resources, the deal highlights IMFA's robust financial health. The company also reported strong quarterly earnings, with rising ferro chrome prices expected to benefit future performance.

(With inputs from agencies.)