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Indian Metals and Ferro Alloys (IMFA) is set to become India's largest and the world's sixth-largest ferro chrome producer following its acquisition of Tata Steel's Kalinganagar ferro chrome plant, which is expected to be completed by January 2026, Subhrakant Panda, Managing Director of Indian Metals and Ferro Alloys (IMFA) told ANI.
Panda said the strategic acquisition, funded entirely through internal accruals, will take IMFA's total capacity beyond 500,000 tonnes per annum, significantly enhancing its competitive positioning in the global ferrochrome market. "We signed the definitive agreement for the strategic acquisition in November 2025. We are in the process of seeking necessary permissions and approvals as well. We expect sometime in January 2026 to close the deal," Panda said. The acquisition aligns perfectly with IMFA's ongoing expansion plans. "We were already one of the leading producers of ferro chrome in the country. We are also putting up a greenfield project in Kalinga Nagar, so the proposed acquisition is a very nice strategic fit," Panda explained. He added that the combination of existing capacity, greenfield expansion, and the acquisition takes the company beyond the half-million-tonne mark, making it the largest producer in India and the sixth largest globally. The Kalinga Nagar plant's strategic location offers significant logistical advantages. "It is close to our mines, close to the steel plants in the Kalinga Nagar area, and Paradeep port for export purposes," Panda noted, adding that these factors will improve the company's cost competitiveness and operational efficiencies. The MD quantified the expected cost advantages from the integrated operations. "Our blended cost of production is expected to improve noticeably when these units are commissioned. I would expect something in the range of Rs 2,000-3,000 per tonne as the advantage," he said. IMFA plans to scale up output significantly over the next 12 to 18 months. The company's greenfield plant at Kalinga Nagar, featuring two furnaces that will add 100,000 tonnes per annum, is also progressing on schedule. "We expect to commission the first furnace by June 2026 and the second furnace shortly thereafter. We will be scaling up to full capacity by the end of calendar year 2026," Panda revealed. Currently, more than 90 percent of IMFA's output is exported, primarily to Korea, Taiwan, Japan, and Europe. With the expanded capacity, the company plans to reorient its market strategy. "We will be exporting about 60 to 70 percent overall, and the balance will be supplied to the domestic market," Panda said, adding that the company will continue to meet the requirements of its long-term customers in Korea and elsewhere. In line with its expansion plans, IMFA is also focusing on sustainability. The company is signing up for about 120 megawatts of hybrid renewable energy with two leading suppliers. "By the end of 2026, when all of this is online, I would expect about 35 to 40 percent of our energy consumption to come from renewable sources," Panda said. IMFA was among the first companies to set up a coal-based captive power plant more than 30 years ago, and is now transitioning toward cleaner energy sources as it expands its manufacturing footprint. The acquisition and expansion come at a time when global demand for ferro chrome, a key ingredient in stainless steel production, remains robust, positioning IMFA for significant growth in the coming years. (ANI)
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