Overview
Indian Metals and Ferro Alloys (IMFA) announced that its Board of Directors has approved the acquisition of Tata Steel’s ferro alloys plant located in Kalinganagar, Odisha, for ₹610 crore, plus applicable GST and net working capital adjustments.
The acquisition aligns with IMFA’s long-term strategy to expand its ferro alloys operations, strengthen market leadership, and unlock operational synergies in eastern India.
Key Details of the Acquisition
| Parameter | Details |
| Acquisition Value | ₹610 crore (plus GST and working capital adjustments) |
| Location | Kalinganagar, Odisha |
| Expected Completion | Within 3–6 months |
| Strategic Objective | Capacity expansion, scale efficiencies, and operational integration |
The deal is expected to accelerate IMFA’s capacity growth and reinforce its integrated value chain from mining to ferro chrome production.
Capacity Expansion
Following the acquisition, IMFA’s total ferro chrome production capacity will almost double, significantly enhancing its ability to meet both domestic and export demand.
| Capacity Segment | Capacity (Lakh Tonnes) |
| Current Capacity | 1.84 |
| Ongoing Organic Expansion | 0.10 |
| Post-Acquisition Capacity | 3.34 |
(Note: The original figures have been interpreted as 1.84 lakh tonnes existing + 0.10 lakh tonne organic expansion + 1.40 lakh tonne acquired capacity = 3.34 lakh tonnes total.)
Strategic Rationale and Synergies
The Kalinganagar facility’s proximity to IMFA’s captive chrome ore mines and its upcoming greenfield project will enable strong operational integration and cost efficiencies.
Key expected benefits include:
- Lower logistics costs through green and efficient supply chain practices
- Optimized use of captive raw materials
- Enhanced production flexibility and export competitiveness
IMFA stated that the acquisition will contribute to its goal of sustainable, resource-efficient growth while reinforcing its leadership in the ferro alloys segment.
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