IMFA to expand in ferro-chrome
Jun 09, 2004
Business Standard

IMFA Group, the largest producer of ferro alloys in the country, intends to almost double its ferro-chrome capacity over next five years.

The capacity build up, to the tune of 1.4 lakh tonne per annum, is being done through conversion contract with an associate company, Utkal Manufacturing Services Ltd (UMSL), which is setting up a ferro-chrome plant at Choudwar.

UMSL is promoted by the same holding entities, which own Indian Metals and Ferro Alloys (IMFA) and its sister concern Indian Charge Chrome Ltd (ICCL). However, IMFA and ICCL directly do not hold any equity in UMSL, clarified Subhrakant Panda, joint managing director, IMFA group.

IMFA and ICCL together have 130 MVA furnace whose combined rated capacity is estimated at 1.7 lakh tonnes of ferro alloys per annum. Against this both the companies produced 1.02 lakh tonnes of ferro-chrome and 35,000 tonnes of ferro silicon in 2003-04.

The new project envisages production of 1.4 lakh tonnes of ferro -chrome and 120 MW of power in a phased manner. The entire project which will cost Rs 600 crore (Rs 200 crore for ferro-chrome and Rs 400 crore for power plant) will be completed in 2009-10.

Panda said, UMSL will set up 96 MVA furnace capacity – 2x24 MVA and 1x48 MVA – at a complex adjacent to the ICCL plant at Choudwar. The first phase comprising installation of a 24 MVA furnace costing about Rs 45 crore will be completed by June, 2005. This will be followed by completion of the second phase of 24 MVA furnace in 2007-08.

Financial closure for the first phase has been achieved and orders worth more than Rs 10 crores have been placed, Panda said. While the first phase is being lease financed, the mode of raising money for the second and third phase are being worked out, he added.

Similarly, a special promotion vehicle (SPV) will be floated soon with a strategic partner for construction of the 120 MW power plant which is scheduled to be operational by 2007-08. For the first phase, the company intends to meet power requirement from the existing 108 MW captive power plant of ICCL.

Stating that there is resurgence of ferro-chrome demand in both overseas and domestic market, Panda said, "Our expansion plans are not only to tap into increasing demand for ferro-chrome but also build upon our leadership position in the industry. The highlight of the project is that value addition will take place within Odisha".

The chrome ore requirement of the project is estimated at one lakh tonnes per annum for phase 1, going up to four lakh tonnes per annum upon commissioning of phase 3 for which the company seeks to have long term arrangement either through captive mines lease or other means.

Panda said, the additional tonnage of ferro-chrome available following the completion of the project will be both exported and sold in the domestic market.

For any information relating to IMFA Group or to enquire about a Press Release issued by us please contact:

Mr Kishore Mohan Mohanty
Bhubaneswar
email: kishoremohanty@imfa.in