Mumbai: Leading Ferro Alloy manufacturer IMFA has announced the acquisition of Tata Steel’s Kalinganagar ferro alloy plant in Odisha for ₹610 crore, making the Odisha-based company the leading ferro alloy manufacturer in India.
The deal, finalised through an asset transfer agreement, covers Tata Steel’s 0.5 million tonne capacity plant, including associated infrastructure. This would complement IMFA (Indian Metals & Ferro Alloys Ltd.)’s existing plants at Choudwar and Therubali which have a combined capacity of 300,000 tonnes annually. IMFA hopes to expand the Kalinganagar plant to up to 475,000 tonnes by FY28, using chrome ore sourced from the company’s existing captive mines and another greenfield facility nearby, helping it with cost and manufacturing efficiencies.
“I am delighted to announce this transformational acquisition which will fast track our expansion plans. Along with our ongoing greenfield expansion, it will take total installed capacity beyond 0.5 million tonnes enabling us to increase our 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.” Mr Subhrakant Panda, Managing Director, IMFA said in a press release.
“We are committed to creating value for stakeholders and, building on the strong foundation of a fully integrated business model, will work to realise cost savings and operational synergies which will have a positive impact on the bottom line. Further, the acquisition is being funded from internal accruals which speaks to the strength of the Balance Sheet.”
