A force to reckon with

IMFA is aggressively scaling up its operations to expand its market presence

Indian Metals & Ferro Alloys Ltd (IMFA) is expanding its capacities in a big way, aiming to double its business in the next few years. The company, looking to further increase its footprint in the ferrochrome market, is one of India’s leading fully integrated producers of value-added ferrochrome, which is a crucial alloy used in the manufacture of stainless steel.

IMFA’s two production facilities at Therubali and Choudwar in Odisha are fully backed by captive power generation of around 204.5 MW, as well as its own chrome ore mines in Odisha’s Sukinda and Mahagiri (FY25 combined production: around 700,000 tonnes). The ₹2,600 crore company exports around 90 per cent of its ferrochrome production to China, Japan, South Korea, and South East Asia. Over the years, IMFA has been recognised globally as a reliable and cost-competitive producer, with a particular focus on customer satisfaction.

In India, apart from IMFA, other manufacturers of this alloy include players like Tata Steel, Ferro Alloys Corporation, Balasore Alloys, Bharat Ferro Alloys, Ferromax Alloys, Jai Balaji Industries, Visa Steel, and Jindal Steel & Power Ltd. The total installed capacity for ferrochrome manufacturing in India is estimated to be over two million tonnes per year.

IMFA, incorporated in 1961, is currently on an expansion spree aimed at almost doubling its turnover to around ₹5,000 crore in the next 4-5 years. The Bhubaneswar-headquartered company is produced by electric arc carbothermic reduction of chromite. Most of the global output is produced in South Africa, Kazakhstan, and India, which have large domestic chromite resources.

The company is currently undertaking a major capex programme to significantly boost its capacity. The company is investing around ₹2,200 crore to expand its ferrochrome production capacity as well as its mining capacity for chrome ore.

The ongoing expansion will see the company’s annual ferrochrome installed capacity increase by 100,000 tonnes to 384,000 tonnes by September 2026, from the present 284,000 tonnes (190 MVA installed smelting capacity). The project is estimated to cost around ₹900 crore. The company is all set to establish a new state-of-the-art greenfield production facility at Kalinganagar, Odisha. The first furnace is scheduled for completion in June 2026, and the second in September 2026. The groundbreaking ceremony for this new facility was recently undertaken in the presence of the Chief Minister of Odisha.

Diversification

Moreover, it is diversifying into ethanol production with an estimated investment of around ₹150 crore. A state-of-the-art grain-based ethanol plant is being developed as a brownfield project, leveraging surplus land and existing infrastructure available in Therubali. Designed with advanced technology, the facility will enable high-quality, efficient, and eco-friendly production of 120 KL per day upon completion by January 2026. In another move, the company is also evaluating the possibility of mining critical minerals like lithium, nickel, and others, given its long-standing presence in the mining sector.

“At the macroeconomic level, Q4FY25 experienced uncertainty on trade policy-related developments, along with the geopolitical situation impacting several segments of commodity markets. Despite this, IMFA demonstrated resilience and cost optimisation and operational efficiency by leveraging its fully integrated business model,” says Saunak Gupta, CFO, IMFA.

According to market observers, commodity markets in general were affected by geopolitical disputes and uncertainties brought about by trade policy-related developments. As a result, ferrochrome prices in particular contracted sharply, making it unviable for most producers, especially as chrome ore prices remained elevated due to supply constraints. South Africa continued to experience high logistics and electricity costs, and global major Glencore announced that it would curtail chrome production until market conditions were more conducive.

“There has been a noticeable turnaround in ferrochrome prices, supported by measures taken by China to support domestic consumption. Moreover, the announcement of a preliminary deal to walk back reciprocal tariffs by the US and China is also a positive development. As such, a positive bias for ferrochrome prices is expected in the first half of FY26, especially given higher input costs,” states Bijayananda Mohapatra, whole-time director and COO, IMFA.

Signs of recovery

“While the macroeconomic environment remains uncertain, early signs of recovery in pricing, particularly from April onwards, give us confidence in a more stable FY2026. Globally, stainless steel production has grown by 7 per cent in calendar year 2024, and capacity rationalisation in markets like South Africa is expected to rebalance the supply-demand dynamics. In FY2026, we remain focused on cost optimisation, operational efficiency and executing our growth initiatives to deliver value to our stakeholders,” adds Gupta.

“Currently, our primary focus is on the ferrochrome expansion project in Kalinganagar. However, taking advantage of surplus land and infrastructure, we are also venturing into ethanol production at Therubali. Our carbon footprint will also reduce on account of a commitment to tie up hybrid renewable energy for the expansion project, resulting in a 25 per cent renewable energy mix going ahead,” adds the IMFA MD, Panda.

Strong leadership

Since assuming the role of managing director in 2006, Panda has significantly contributed to IMFA’s growth and operational excellence over these years. IMFA was born out of the visionary leadership of his father, Bansidhar Panda (who passed away on 22 May 2018), a trailblazer who laid the foundation for Odisha’s industrial growth. With advanced degrees from Michigan Technological University and Harvard University, his father was deeply inspired by the transformative power of science and innovation.

With a degree from Banaras Hindu University, his father left for the United States in the 1950s to study at Michigan Technological University and Harvard University. On returning from the US, where he worked as a researcher, he established IMFA, starting with a ferroalloy plant at Therubali in the then remote and backward district of Rayagada in 1961 – a bold step that revolutionised the state’s industrial landscape.

His leadership qualities are well manifested within his own company as well. Leading from the front, he has guided IMFA to become one of the leading producers of value-added ferrochrome. The company’s integrated business model has positioned it as a reliable and cost-effective producer of best-in-class quality ferrochrome, both domestically as well as internationally. He firmly believes in sustainable and responsible growth.

“Going ahead, we are committed to optimising our operations, further expanding our renewable energy footprint, and driving sustained value creation for our employees and stakeholders. Our debt-free balance sheet provides a strong foundation for future growth and strategic investments,” states IMFA Group CFO Gupta.

With all these developments in place, IMFA is all set to start its next growth phase, where it is looking to double its turnover to 5,000 crore from the present level of around 2,600 crore in the next 4–5 years. Over the years, the company has built a strong foundation with a robust asset portfolio. It boasts an impeccable track record of performance backed by its integrated production base, which has enabled the company to establish a resilient business model that has supported it during challenging market conditions.