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Indian Metals & Ferro Alloys Ltd (IMFA), India’s leading fully integrated ferro alloys producer, has signed agreements to acquire Tata Steel’s ferro chrome plant in Kalinganagar, Odisha. Established in 1961, IMFA will purchase the facility for Rs 610 crore. The deal will strengthen its position as India’s largest ferro chrome producer and the sixth largest globally.

The acquisition will add 99 MVA furnace capacity, including 66 MVA operational and 33 MVA under construction. Consequently, IMFA’s total capacity will exceed 0.5 million tonnes annually. The 115-acre Kalinganagar plant houses four furnaces capable of producing 100,000 tonnes of ferro chrome each year. Once the fifth furnace becomes operational, overall output will rise to 150,000 tonnes per year.

Ferro chrome is an essential alloy used in stainless steel production. It significantly enhances corrosion resistance, durability, and mechanical strength. India’s stainless steel demand rises with growing urbanisation and rapid industrialisation. Moreover, the new plant’s proximity to IMFA’s captive chrome ore mines and upcoming greenfield expansion will ensure cost advantages and greater operational synergy.

IMFA’s Managing Director, Subhrakant Panda, described the acquisition as “transformational” for the company. He said the move would accelerate expansion and increase market share, particularly within domestic markets where ferro chrome demand continues to rise. Additionally, Panda emphasised that India’s strong economic growth supports steady demand for stainless steel and allied products.

He also confirmed that IMFA will fund the acquisition entirely through internal accruals, showing the company’s strong financial health. Furthermore, the company expects the operational integration to deliver meaningful cost savings, enhance efficiency, and improve profitability.

Panda also noted that ferro chrome prices surged during the end of the second quarter. This rise followed increased chrome ore costs and a steep production decline in South Africa. Therefore, he expects higher benchmark and spot prices to positively impact the ongoing quarter’s performance.