BHUBANESWAR: Indian Metals and Ferro Alloys Ltd (IMFA) on Friday announced completion of the strategic acquisition of Tata Steel Ltd’s ferro chrome plant in Kalinganagar.
The transaction valued at Rs 707.26 crore comprises base consideration of Rs 610 crore along with GST and net working capital and it has been funded entirely from internal accruals.
Spread across 115 acre in Kalinganagar, the newly-acquired facility consists of four furnaces capable of producing Rs 1 lakh tonne per annum (TPA) which will further increase to 1.5 lakh TPA when the partially-built fifth furnace is commissioned over the next one year.
Commenting on the acquisition, managing director of IMFA Subhrakant Panda said it is a transformative deal which marks a key milestone in the company’s growth journey. “With our greenfield expansion, it positions us as India’s largest producer of ferro chrome and amongst the foremost globally,” he said. Panda said IMFA is committed to creating value for all stakeholders by working towards a smooth and seamless integration which delivers significant operational synergies. “We will continue to shape the future of ferro chrome responsibly, sustainably and ambitiously,” he added.
According to a statement, with the greenfield ferro chrome project, total furnace capacity will stand at 355 MVA (5.34 lakh TPA). Chrome ore requirement for the enhanced smelting capacity will be entirely met from the company’s captive chrome ore mines and supported by hybrid renewable power.