Bhubaneswar, Nov 4: Indian Metals & Ferro Alloys Ltd (IMFA) today announced the signing of definitive agreements to acquire Tata Steel Limited’s (TSL) ferro chrome plant in Kalinganagar, Odisha.

The asset transfer agreement will add 99 MVA furnace capacity (66 MVA existing and 33 MVA under construction) for a base purchase consideration of Rs 610 crores, making IMFA the country’s largest producer and 6th largest globally with total capacity in excess of 0.5 million tonnes.

Spread across 115 acres in Kalinganagar, the facility being acquired consists of four furnaces capable of producing 100,000 tpa annually which will further increase to 150,000 tpa once the fifth furnace is commissioned.

It’s proximity to the company’s captive chrome ore mines and the upcoming greenfield expansion will lead to significant costs savings and operational synergies. Subject to the satisfaction of agreed conditions and requisite approvals, the transaction is expected to close in 3 months.

Commenting on the acquisition, Subhrakant Panda, Managing Director, IMFA said, “I am delighted to announce this transformational acquisition which will fast track our expansion plans. Along with our ongoing greenfield expansion, it will take total installed capacity beyond 0.5 million tonnes enabling us to increase our market share with a particular focus on domestic sales at a time when demand for ferro chrome is increasing due to India’s rapid economic growth.”

Panda added: “We are committed to creating value for stakeholders and, building on the strong foundation of a fully integrated business model, will work to realise cost savings and operational synergies which will have a positive impact on the bottom line. Further, the acquisition is being funded from internal accruals which speaks to the strength of the Balance Sheet.”