IMFA to acquire Tata Steel’s Kalinganagar ferro chrome plant for ₹610 crore

Provider of raw material for stainless steel, India Metals and Ferro Alloys Ltd (IMFA) informed Tuesday that it would acquire Tata Steel’s ferro chrome plant in Kalinganagar town of Odisha for ₹610 crore. It stated that the acquisition of the asset would add 99 mega volt amperes (MVA) of furnace capacity. This is inclusive of 66 MVA of existing capacity and 33 MVA under construction, cumulating to a total capacity exceeding 0.5 million tonnes. 

Subject to regulatory approvals, IMFA expects to close the transaction in three months.  

Expansion of ferrochrome capacity has been on IMFA’s agenda for some time now. Subhrakant Panda, Managing Director of the ferro-chrome producer, held the capacity expansion would enable the company to “increase market share with a particular focus on domestic sales at a time when demand for ferro chrome is increasing due to India’s rapid economic growth.” 

Ferrochrome is an alloy of chromium and is an important raw material for production of stainless steel. Globally, China and South Africa are leading producers of the raw material.