IMFA : Growth mode
Oct 09, 2006
Businessworld

With fortunes improving for the steel industry, things are looking up for those associated with it. The ferro alloys industry, which provides inputs for carbon, stainless and electrical steel, too, is looking up. So, the Odisha-based, Rs 600 crore Indian Metals & Ferro Alloys (IMFA) has drawn up a Rs 700 crore expansion plan. The country's largest producer of ferro-alloys is planning to increase its ferro-alloys capacity from the present 235,000 tonnes to 350,000 tonnes. It is also setting up a 30 MW cogeneration power plant and a 120 MW, coal-based power plant that will supply largely to the grid. Group company Indian Charge Chrome (ICCL) is already running a 108 MW captive power plant (CPP).

IMFA will expand in three phases. In the first, it commissioned a 27 MVA ferro alloy furnace in March. It is expected to cash in on the likely increase in steel and stainless steel demand.

Besides, IMFA, which owns most of the chrome ore mines, and ICCL which operates the captive plant, are to be merged to improve synergies.

Ferro chrome, used for stainless steel, is IMFA's lead product. India's per capita consumption of stainless steel is 1 kg a year. In China, it is 4 kg and in developed countries 10-12 kg. Subhrakant Panda, Director, IMFA and Managing Director, ICCL, says, "A doubling or tripling of India's current consumption is there for the asking, and this itself is quite an opportunity. The power plant is to balance the steel cycle and also because the prognosis for the sector is good."

The second and third phases of the expansion will depend on a combination of market demand and more importantly, access to adequate captive chrome ore resources. IMFA produces enough ore to meet its current needs and has also applied for mining leases keeping its expansion in mind. It is also tying up with a third party supplier like Odisha Mining Corporation for supplying chrome ore. Panda also doesn't rule out a ferro manganese project, but that would depend on what finds IMFA makes from the prospecting licence it has for a manganese mine.

Unlike the Tata Group, which has set up a Rs 300 crore ferro chrome project in South Africa, Panda does not see the need to expand overseas.

Since ferro chrome is a very power intensive industry, IMFA could benefit from the lower tariffs in other countries. "We are in the steel hub of Odisha and also are in geographical proximity to the Far East, one of the biggest market for steel. So we have the best of both worlds," says Panda.

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