IMFA Fuels Future Growth with ₹2,000 Crore Capex

Indian Metals & Ferro Alloys (IMFA), India’s leading ferrochrome producer, has announced a ₹2,000 crore capital expenditure plan focused on greenfield expansion, mining capacity enhancement, and diversification into ethanol production.

The investment will be primarily funded through internal accruals, with limited reliance on term loans, ensuring the company maintains a debt-to-equity ratio below the 0.5% cap.

A major component of the plan is a ₹900 crore expansion at IMFA’s Kalinganagar facility in Odisha, which will add two ferrochrome furnaces with a combined capacity of 100,000 tonnes by 2026, along with a waste heat recovery power plant. Approximately ₹150–200 crore has already been deployed toward the project.

In parallel, IMFA will invest over ₹1,000 crore in its mining operations to scale output to 900,000 tonnes by FY26, with a Phase II target of 1.2 million tonnes. For FY26, production from the Sukinda and Mahagiri mines is projected at 800,000 tonnes.

Expanding beyond its core business, IMFA is entering the ethanol segment with a ₹160 crore investment in a 120 KLD plant at Therubali, Odisha, scheduled to be operational by Q1 FY26. Managing Director Subhrakant Panda described the ethanol venture as a value-accretive initiative that “leverages existing infrastructure” and aligns with the company’s core competencies.

News by Rahul Yelligetti.