IMFA Starts Hot Metal Tapping at Kalinganagar Ferro Chrome Expansion

Indian Metals & Ferro Alloys Ltd (IMFA) has reached a key operational milestone at its Kalinganagar expansion in Odisha, with the company starting the first hot metal tapping at its greenfield ferro chrome project.

The development marks the transition of the project from construction and commissioning into active production. The Kalinganagar expansion, known as KNR 1, comprises two 33 MVA furnaces and is designed to add 100,000 tonnes per annum (tpa) of ferro chrome production capacity.

The milestone comes after IMFA’s acquisition and integration of Tata Steel’s ferro chrome plant at Kalinganagar, referred to as KNR 2. The acquisition was completed at a transaction cost of ₹707.26 crore and was funded through internal accruals.

With the KNR 1 expansion fully commissioned, IMFA expects its overall ferro chrome production capacity to reach around 534,000 tonnes annually, strengthening its position as one of India’s largest integrated ferro chrome producers.

The first furnace at KNR 1 has completed its trials and entered the hot metal tapping stage. The second 33 MVA furnace is expected to be pre-commissioned by September 2026, according to the company’s expansion plans.

The capacity addition comes at a time when IMFA is also strengthening its raw material integration. During the first quarter of FY27, the company produced around 272,555 tonnes of chrome ore from its captive mining operations, supporting its integrated production model and reducing exposure to external raw material markets.

IMFA’s recent financial performance has also provided a strong backdrop for the expansion. Its standalone net profit for Q1 FY27 rose to ₹191.49 crore, more than double the ₹91.48 crore reported in the corresponding quarter a year earlier.

The company also recorded ferro chrome production of approximately 80,690 tonnes during the quarter, supported partly by the integration of the acquired Kalinganagar plant.

Beyond capacity expansion, IMFA is working to reduce its dependence on conventional power sources. The company has entered into a long-term agreement for 65 MW of hybrid renewable power, with the aim of increasing the share of non-fossil fuel consumption to around 40% by mid-2027.

The Kalinganagar expansion is strategically important for IMFA because of its proximity to its captive chrome ore mines and the Paradeep port. This combination can support raw material movement, production efficiency and export logistics as additional capacity comes online.

The company’s next key milestone will be the commissioning of the second KNR 1 furnace. Its performance, along with ferro chrome prices and demand from the stainless steel industry, will determine how quickly the new capacity translates into higher production and earnings.