Tata Steel to sell Jajpur ferro alloy plant to IMFA for ₹610 crore

Tata Steel has signed an asset transfer agreement with IMFA for the sale of its Jajpur ferro alloy plant in Odisha. The deal, worth Rs 610 crore, is expected to close within three months

Tata Steel on Tuesday said it has signed an asset transfer agreement with Indian Metals & Ferro Alloys Ltd (IMFA) for the sale of its ferro alloy plant at Jajpur, Odisha, for a base consideration of Rs 610 crore.

 

What does the Tata Steel-IMFA deal involve?

 

The transaction is expected to be completed within three months, subject to requisite approvals, the company said in a statement.

 

In a separate statement, IMFA said the acquisition would add 99 MVA of furnace capacity — comprising 66 MVA of existing capacity and 33 MVA under construction — making it India’s largest and the world’s sixth-largest ferro alloy producer with a total capacity exceeding 0.5 million tonnes.

 

How will the acquisition enhance IMFA’s capacity?

 

Spread across 115 acres in Kalinganagar, the facility being acquired includes four furnaces capable of producing 100,000 tonnes per annum (tpa). The capacity will rise to 150,000 tpa once the fifth furnace is commissioned, IMFA said.

 

The plant’s proximity to IMFA’s captive chrome ore mines and its upcoming greenfield expansion will generate significant cost savings and operational synergies, the company added.

 

What does IMFA say about its expansion plans?

 

Commenting on the acquisition, Subhrakant Panda, Managing Director, IMFA, said the deal would accelerate the company’s growth plans.

 

“Along with our ongoing greenfield expansion, this acquisition will take our total installed capacity beyond 0.5 million tonnes, enabling us to increase market share with a particular focus on domestic sales at a time when demand for ferro chrome is rising due to India’s rapid economic growth,” Panda said.