IMFA sets ambitious expansion plans
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 Rs2,600 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.
The BSE/NSE-listed company has developed long-standing relationships with its customers, which include, among others, multinationals like POSCO of South Korea, Tsingshan Group of China, E-United Group of Taiwan, Marubeni Corporation and Nisshin Steel of Japan, as well as other leading stainless steel producers in China and Taiwan. Within India, stainless steel producers such as Jindal Stainless, Rimjhim Ispat, BRG Steel, AIA Engineering, and Shah Alloys are among its customers.
Ferrochrome is a key ingredient in the production of stainless steel. It is an alloy of iron and chromium, typically containing 50-70 per cent chromium, and it’s essential for imparting corrosion resistance and other desired properties to the steel. Over 80 per cent of the world’s ferrochrome is utilised in the production of stainless steel. The average chrome content in stainless steel is around 18 per cent. Ferrochrome 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.
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 Rs5,000 crore in the next 4-5 years. The Bhubaneswar-headquartered company is currently undertaking a major capex programme to significantly boost its capacity. The company is investing around Rs2,200 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 Rs900 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 ground-breaking ceremony for this new facility was recently undertaken in the presence of the Chief Minister of Odisha.
In order to support its expanded ferrochrome capacity, the company, which employs over 2,000 people, is also increasing its chrome ore mining output to 900,000 tonnes annually by FY27 in Phase I, and finally to 1.2 million tonnes by FY31. IMFA will invest around Rs1,000 crore across these two phases to increase its mining production.
The company is also adding 110 MW of hybrid renewable energy (wind and solar) to its existing captive power generation of around 204 MW. It has signed a long-term power purchase agreement (Rs3.84/unit) with JSW Green Energy for 70 MW. Furthermore, it has entered into another binding term sheet with Ampin Energy Utility One to acquire hybrid renewable energy of 40 MW contracted demand (PPA at Rs3.75/unit). Captive power generation ensures uninterrupted and reliable power supply, which is important since ferrochrome production is power-intensive. The company will invest around Rs145 crore in scaling up its power generation.
Diversification
Moreover, it is diversifying into ethanol production with an estimated investment of around Rs150 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.
“The landscape for stainless steel, and by extension ferrochrome, has received a boost from government-led spending on infrastructure, even as there is a nascent revival in private sector capex. Against this backdrop, IMFA is strategically well positioned to take a quantum leap by leveraging its fully integrated operations and debt-free balance sheet as it shifts to a ‘Risk On’ approach. We reached new heights in production in FY2025, achieving record levels in ferrochrome output of 700,000 tonnes. All our expansion plans are well underway, with additional production capacity being developed to meet future demand. Key strategic initiatives, such as leveraging surplus land for ethanol production, align with government policies and demonstrate our adaptability without detracting from our core business,” says Subhrakant Panda, 54, Managing Director, IMFA.
“Our strategic measures revolve around capacity expansion, captive ore utilisation, and business de-risking. Our integrated operations ensure efficiency and cost optimisation across the production process, enhancing resilience amidst disruptions and stabilising market fluctuations. Buoyed by the resilience of our business model, we are confident about the future as we look to embark on a sustained growth journey. We are committed to creating long-term value for our stakeholders and fostering inclusive growth for communities, thereby aligning with India’s growth trajectory,” adds Panda.
While the company is pursuing its expansion programmes as planned, it had to face a challenging macroeconomic scenario during FY25. Uncertain geopolitical conditions and an overall correction in ferrochrome prices in the global market adversely impacted its topline during the year, with revenue decreasing to around Rs2,565 crore from around Rs2,780 crore in FY24. However, the company improved its PAT to Rs378 crore from Rs363 crore in the previous year. In FY25, the company produced 260,000 tonnes of ferrochrome. With a 52-week high/low of Rs998/Rs550, the company’s stock at NSE was priced at Rs615 on 30 May 2025 (Market Cap: Rs3,370 crore).
“Despite a challenging macroeconomic environment and depressed commodity prices during Q4 FY25, IMFA demonstrated resilience by leveraging its fully integrated business model and long-term debt-free balance sheet, along with a sharp focus on operational efficiency. With ferrochrome prices recovering from recent lows, we are seeing improved margins in the ongoing quarter, which will translate into better financial performance going ahead,” believes the IMFA MD.
“At the macroeconomic level, Q4FY25 experienced uncertainty on trade policy-related developments, along with the geopolitical situation impacting several segments of commodity markets. The global ferrochrome market traversed through a phase of subdued global demand and a weak pricing trend. Despite this, IMFA demonstrated resilience through 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 corrected 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 ferrochrome 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 FY26. 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 FY26, we remain focused on cost optimisation, operational efficiency and executing our growth initiatives to deliver value to our stakeholders,” adds Gupta.
According to Fortune Business Insights, the global ferrochrome market, which was valued at $16.92 billion in 2023, is projected to grow to $26.55 billion by 2032, exhibiting a CAGR of 5.1 per cent during the forecast period. Asia-Pacific dominates the ferrochrome market with a market share of around 74.17 per cent. In fact, the global trade of ferrochrome is driven by major producers like South Africa, Kazakhstan, India and Turkey, with China being the largest consumer. The demand for ferrochrome is driven by increasing stainless steel production, following growing demand from various end-use industries such as automotive and construction.
Going ahead, increasing stainless steel consumption in the construction industry will serve as a major driving factor for the market to grow significantly. Stainless steel was not commonly utilised for building structural applications initially, owing to its high cost. However, technological advancements have made this steel more accessible and affordable over the last decade, while improving corrosion resistance and longevity. Hence, the growing number of commercial and residential buildings, increasing commissioning of infrastructural projects, and rising water leakage issues will augment the demand for stainless steel in the construction industry. Stainless steel is also extensively used in automotive applications, as it is corrosion-resistant and has high-temperature oxidation, which offers energy absorption properties and maintains its mechanical properties over a wide temperature range.
The global stainless steel market size was estimated at $117.63 billion in 2023 and is expected to grow at a CAGR of 6.7 per cent from 2024 to 2030. Over the past four decades, the growth of the stainless-steel industry worldwide has been extraordinary. Stainless steel has surpassed other metals, including carbon steel, aluminium and copper, driven by increasing demand. From 1980 to 2021, stainless steel demonstrated a CAGR of 5.35 per cent, significantly higher than the average CAGR of 2.5 per cent for major metals.
While China and Indonesia are expected to be the primary drivers of overall stainless steel production growth, India’s stainless steel consumption has shown robust growth over recent years, reflecting the country’s increasing demand and industrial expansion. In FY22, the consumption was 3.6 million tonnes per annum. By FY30, this is projected to reach 6.5 MTPA. This growth trajectory represents a CAGR of around 7.0-7.5 per cent, indicating a steady and significant increase in the demand for stainless steel in the coming years.
“India currently holds the position of the second-largest global consumer of stainless steel, with its consumption projected to increase significantly. The per capita consumption of stainless steel, which stands at 2.8 kg, is expected to rise to between 8.5 kg and 11.5 kg by 2047. The demand for stainless steel is anticipated to grow. Stainless steel’s unique properties, such as corrosion resistance, lower life cycle costs, 100 per cent recyclability, and sustainability, have driven its significant growth across various industries,” says Vijay Sharma, Director, Corporate Affairs of Jindal Stainless Ltd, which is expanding its production capacity to 4.2 million tonnes from its current 3 MTPA.
Amidst these developments, IMFA has carved a distinct place for itself in the global market, competing with players like Tata Steel; Ferro Alloys Corporation; Eurasian Resources Group of Luxembourg; Samancor Chrome of South Africa; Jindal Steel & Power Ltd; Balasore Alloys Ltd; Glencore of Switzerland and TNC Kazchrome JSC of Kazakhstan.
“We have a distinct edge over other players since we are a fully integrated producer of ferrochrome with substantial smelting capacity, which is backed up by captive chrome ore mines and in-house power generation. With more than six decades in the business, we are known for our quality, reliability and customer orientation. With a strong foundation provided by a resilient business model, operational excellence, enduring customer relationships, and a debt-free balance sheet, we are confident about our future,” states Panda.
“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 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 Koraput in 1961 – a bold step that revolutionised the state’s industrial landscape.
Born in Cuttack, Odisha, Panda completed his schooling at Stewart School, Bhubaneswar, and Delhi Public School, R K Puram, Delhi. In 1993, Panda graduated with honours from Boston University’s Questrom School of Business with a dual concentration in Finance and Operations Management, and was inducted into the Golden Key International Honour Society and Beta Gamma Sigma Honour Society of the Association to Advance Collegiate Schools of Business.
Panda has been actively involved in various leadership capacities within the Federation of Indian Chambers of Commerce & Industry. He served as the President of FICCI (2022–23), following a progression through the ranks, having held positions as Senior Vice President and Vice President from December 2021 to December 2022, and December 2020 to December 2021, respectively.
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.
“At IMFA, sustainability is not just about securing resources; it is a holistic commitment that permeates every aspect of our operations. We believe in prioritising long-term gains over short-term profits, guiding our decisions towards a future that is not only financially sound but also environmentally responsible. There is a keen focus on sustainability, and we have a longstanding commitment to environmental responsibility; this is evident in initiatives such as zero discharge operations at Choudwar and extensive pollution control measures, including water treatment plants at our mining operations. Most importantly, we look to reduce our carbon footprint through greater use of renewable energy in times to come,” explains Panda.
“Going ahead, we are committed to optimising our operations, further expanding our renewable energy footprint, and driving sustained value creation for our investors and stakeholders. Our debt-free balance sheet provides a strong foundation for future growth and strategic investments,” states IMFA 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 Rs5,000 crore from the present level of around Rs2,600 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.