IMFA to Lead India’s Ferro Chrome Market with Tata Steel Acquisition

Indian Metals and Ferro Alloys (IMFA) is poised to become India’s largest and the world’s sixth-largest producer of ferro chrome following its acquisition of Tata Steel’s Kalinganagar ferro chrome plant. The deal, confirmed by IMFA’s Managing Director, Subhrakant Panda, is expected to close by January 2026 and will enhance IMFA’s production capacity to over 500,000 tonnes per annum. This strategic move is set to significantly bolster IMFA’s position in the global ferrochrome market.

Details of the Acquisition

The definitive agreement for the acquisition was signed in November 2025. Panda stated that the company is currently in the process of obtaining the necessary permissions and approvals to finalize the agreement. He emphasized that this acquisition aligns seamlessly with IMFA’s ongoing expansion plans, noting, “We were already one of the leading producers of ferro chrome in the country.”

IMFA is also developing a greenfield project in Kalinganagar, which will further enhance its production capabilities. Panda explained, “The combination of existing capacity, greenfield expansion, and the acquisition takes the company beyond the half-million-tonne mark, making it the largest producer in India and the sixth largest globally.”

Logistical Advantages and Cost Benefits

The Kalinganagar plant’s strategic location is expected to provide IMFA with significant logistical benefits. Panda highlighted its proximity to the company’s mines, nearby steel plants, and Paradeep port, which facilitates exports. Such advantages are anticipated to improve the company’s cost competitiveness and operational efficiencies.

Panda quantified the expected cost benefits, stating, “Our blended cost of production is expected to improve noticeably when these units are commissioned. I would expect something in the range of Rs 2,000-3,000 per tonne as the advantage.”

IMFA plans to ramp up production significantly in the next 12 to 18 months. The company’s greenfield plant in Kalinganagar, featuring two furnaces, is scheduled to add an additional 100,000 tonnes per annum. Panda indicated that the first furnace is expected to be commissioned by June 2026, with full capacity anticipated by the end of that calendar year.

The current market landscape shows that over 90 percent of IMFA’s output is exported, primarily to markets in Korea, Taiwan, Japan, and Europe. With expanded capacity, the company intends to adjust its market strategy, projecting that about 60 to 70 percent of its output will be exported, while the remainder will cater to the domestic market.

Sustainability Initiatives

In conjunction with its expansion efforts, IMFA is also prioritizing sustainability. The company is set to engage in agreements for approximately 120 megawatts of hybrid renewable energy with two leading suppliers. Panda expressed optimism about renewable energy’s role in the company’s future, stating, “By the end of 2026, when all of this is online, I would expect about 35 to 40 percent of our energy consumption to come from renewable sources.”

As one of the pioneers of a coal-based captive power plant over 30 years ago, IMFA is now transitioning toward cleaner energy solutions while expanding its manufacturing footprint. The timing of this acquisition and the corresponding expansion comes as global demand for ferro chrome, a critical element in stainless steel production, continues to rise, positioning IMFA for substantial growth in the years ahead.