IMFA to Acquire Tata Steel’s Ferro Alloys Plant for ₹610 Crore

Indian Metals and Ferro Alloys (IMFA) announced on November 4 that its board has approved the acquisition of Tata Steel’s ferro alloys plant located at Kalinganagar, Odisha. The move aligns with IMFA’s strategy to expand its ferro alloys business and strengthen its market position.

Key Details of the Acquisition

• Acquisition Value: ₹610 crore plus GST and net working capital adjustments
• Location: Kalinganagar, Odisha
• Expected Timeline: 3–6 months for completion
• Strategic Objective: Capacity expansion and operational synergies

The acquisition falls within IMFA’s growth roadmap to scale its ferro alloys operations and leverage locational advantages.

Capacity Expansion

Post-acquisition, IMFA’s ferro chrome capacity will nearly double:

• Current Capacity:84 lakh tonnes
• Organic Expansion: 1 lakh tonnes
• Post-Acquisition Capacity:34 lakh tonnes

This expansion positions IMFA to cater to rising domestic demand and new market opportunities.

Strategic Advantages

The plant’s proximity to IMFA’s captive mines and its upcoming greenfield project in Kalinganagar will enable cost efficiencies and operational synergies. The company highlighted that these factors, combined with its green logistics initiatives, will enhance competitiveness.

Financial Context

IMFA reported an EBITDA of ₹531 crore for FY25. The acquisition is expected to provide scale benefits and strengthen profitability amid tight chrome ore supply conditions.

Read More: RBI Bulletin Flags Challenges for India's Steel Sector.

Conclusion

IMFA’s ₹610 crore acquisition of Tata Steel’s ferro alloys plant marks a step toward doubling production capacity and reinforcing its leadership in the ferro alloys segment. With locational advantages and cost synergies, the company looks ahead for its next phase of growth.

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