IMFA Acquires Tata Steel’s Ferro Chrome Plant in Odisha
India Metals and Ferro Alloys Ltd (IMFA) has announced a significant acquisition. The company will purchase Tata Steel’s ferro chrome facility located in Kalinganagar, Odisha, for ₹610 crore. This acquisition will enhance IMFA’s production capabilities, adding 99 mega volt amperes (MVA) of furnace capacity, which includes 66 MVA of current capacity and 33 MVA that is presently under construction. Overall, this transaction will bring their total capacity to over 0.5 million tonnes.
Transaction Timeline and Goals
Once all regulatory approvals are secured, IMFA aims to finalize the transaction within three months. Increasing their ferrochrome capacity has long been a goal for the company.
Market Strategy for Domestic Sales
Subhrakant Panda, Managing Director of IMFA, emphasized that this expansion will enable them to “increase market share with a particular focus on domestic sales.” The demand for ferro chrome is on the rise, driven by India’s robust economic growth, making this acquisition timely and strategic.
Importance of Ferrochrome
Ferrochrome, an alloy of chromium, is a crucial raw material in stainless steel production. Currently, China and South Africa are the leading global producers of this essential material, indicating the competitiveness of the market.