IMFA bets on ferro chrome expansion, renewables for next growth phase

IMFA is expanding ferro chrome capacity, scaling renewable energy use, and exploring critical minerals as it prepares for the next phase of growth

Indian Metals & Ferro Alloys (IMFA) is undertaking a major transformation spanning capacity expansion, renewable energy integration, mining scaleup, and critical minerals as the country’s largest ferrochrome producer positions itself for its next phase of growth, Managing Director Subhrakant Panda said.

 

The company is targeting ferrochrome output of 400,000 tonnes in 2026-27 (FY27) and more than 500,000 tonnes in 2027-28 through the acquisition of Tata Steel’s ferrochrome business at Kalinganagar in Odisha and an ongoing greenfield expansion at the same location. “From the current 260,000 tonnes of ferrochrome output, we will go up to more than 500,000 tonnes,” Panda told Business Standard in an interview in New Delhi.

 

 

IMFA acquired Tata Steel’s ferrochrome business at Kalinganagar for ₹707 crore in February this year through internal accruals. The facility, which is already operational, adds 100,000 tonne of capacity. Alongside this, the company’s greenfield expansion at Kalinganagar will add another 100,000 tonne, with the first furnace expected to be commissioned by June-end or early July.

 

To support the expansion, IMFA is sharply increasing chrome ore production from its captive mines. “From 600,000 tonnes, we have gradually taken it up to 800,000 tonnes. And this year, FY27, we will touch 1 million tonne,” he said.

 

At the same time, the company is undertaking a shift towards renewable energy sourcing in what Panda described as a major strategic transition for the power-intensive ferrochrome business.

 

IMFA currently has 205 megawatt (Mw) of captive power generation capacity, of which nearly 200 Mw is coal-based. The company has signed a 70 Mw renewable energy agreement with JSW Energy under a dedicated captive model, with commissioning expected within the next two months. It is also negotiating another 60-70 Mw renewable energy arrangement.

 

“By next year, about 40 per cent of our energy consumption will come from renewable sources, which is quite considerable,” Panda said, adding that the company is focusing on hybrid solar and wind power to ensure uninterrupted furnace operations.

 

The company also expects a structural shift in its sales mix as domestic stainless steel demand rises. Currently, more than 90 per cent of IMFA’s ferrochrome production is exported, largely to Far East markets. Once expanded capacity stabilises, exports are expected to account for around 60 per cent of production. “Of 260,000 tonnes, 220,000-230,000 tonnes are exported. Of 500,000 tonnes, close to 300,000 tonnes will still be exported,” Panda said.

 

Beyond ferrochrome, the company is diversifying into ethanol through a 120 kilolitres per day grain-based plant at Therubali in Odisha, where chrome operations are gradually being de-emphasised because of logistical disadvantages associated with transporting ore from Jajpur district.

 

However, Panda indicated that IMFA’s principal long-term diversification focus remains critical minerals. The company is evaluating opportunities across mining and downstream processing and has already participated in multiple critical mineral block auctions.

 

“We would like to get into critical minerals not just in the mining phase, but also in value-added processing,” Panda said. “Hopefully, over the next year, we will make a breakthrough in getting certain critical minerals.”

 

Panda said IMFA is primarily evaluating opportunities in Odisha for its critical minerals foray while remaining open to assets in other regions, depending on exploration quality and commercial viability.

 

On the ongoing West Asia tensions, Panda said IMFA has limited direct exposure because most exports are routed to Far East markets, although elevated oil prices have increased freight and logistics costs. “The only clear impact for us is elevated freight costs,” he said.