Introduction
Established in 1961 as a public limited company under the name Indian Metals & Ferro Alloys, the company has grown into India’s largest fully integrated producer of ferro chrome. With an installed furnace capacity of 190 MVA, captive power facilities of 204.55 MW, and extensive chrome ore mining areas in Odisha—renowned for its rich natural resources—the company plays a pivotal role in the ferro chrome industry. A significant portion of its ferro chrome output is exported to major markets, including Korea, China, Japan, and Taiwan.
The company operates two manufacturing units in Odisha, located in Therubali and Choudwar, with a combined production capacity of 284,000 TPA and a smelting capacity of 190 MVA. Additionally, it owns two captive mines in Sukinda and Mahargiri, with a total capacity of 6.51 lakh TPA. IMFA’s power infrastructure includes 204.55 MW of captive power generation and 4.55 MW of solar power capacity. Both mining leases have long durations, expiring in 2049 and 2055, ensuring sustainable raw material supply.
Despite challenging market conditions, the company achieved a significant milestone in 2000-01, surpassing a turnover of ₹200 crore for the first time. In 2005-06, the company executed the Composite Scheme of Arrangement and Amalgamation, duly approved by shareholders, creditors, and the Hon’ble High Court of Orissa on October 13, 2006. As part of this scheme, ICCL was merged with the company, effective from April 1, 2005.
In 2011, the company commissioned a 30 MW dual fuel power plant. Further expanding its global footprint, it acquired a 70% stake in the Indonesian coal mine Pt Sumber Rahayu Indah in 2011-12 through a step-down subsidiary registered in Singapore. That same year, its subsidiary, Utkal Green Energy Limited, transferred its completed Fly Ash Brick Plant and other related assets to the company as a going concern. The company also commissioned a 3 MW solar power plant in Therubali in June 2017.
During the fiscal year 2018-19, the Hon’ble National Company Law Tribunal (NCLT), Cuttack Bench, approved the Scheme of Amalgamation between Indian Metals & Carbide Limited (IMCL), B Panda and Company Private Limited (BPCO), and Indian Metals & Ferro Alloys Limited. The scheme became effective on April 30, 2019, further strengthening the company’s position in the industry.
Over the years, the company has built long-standing relationships with global giants such as POSCO (South Korea), Marubeni Corporation and Nisshin Steel (Japan), along with major stainless steel manufacturers in China and Taiwan. In India, key clients include Jindal Stainless and Shah Alloys. The company has also formed strategic partnerships, including a 76:24 joint venture with POSCO in India for ferro chrome production with an assured off-take commitment and long-term contracts with Nisshin Steel.
Given its logistical advantage and the dominance of stainless steel manufacturing in the Far East, the majority of the company’s ferro chrome exports are directed toward China, Japan, and Taiwan. However, with the anticipated growth in stainless steel demand in India, a shift towards the domestic market is underway, positioning the company favorably. India’s per capita stainless steel consumption stands at approximately 2 kg, significantly lower than the 15 kg observed in advanced economies, highlighting a substantial growth opportunity. The expected focus on infrastructure development is set to further drive demand.
The company’s commitment to exporting value-added ferro chrome has earned it multiple accolades, including the 43rd National Award for Export Excellence from EEPC in 2010-11.
Business Products
As a pioneer in silicon alloys production, IMFA has evolved into a leading ferro chrome manufacturer, playing a crucial role in enhancing the corrosion resistance of stainless steel. While a significant portion of its ferro chrome output is exported to the Far East (China, Japan, and Taiwan), the company is well-positioned to cater to the growing domestic demand, which is projected to rise substantially in the coming years.
IMFA’s core smelting business is predominantly export-oriented, with over 90% of its ferro chrome output supplied to major steel producers in South Korea, China, Taiwan, and Japan. The company has established long-term partnerships with leading stainless steel manufacturers, ensuring assured off-take agreements and operational stability.
What Are Ferro Alloys?
Ferroalloys are essential in steel and alloy manufacturing, significantly improving the strength, ductility, fatigue resistance, and corrosion resistance of steel. These alloys are composed of iron combined with high concentrations of metals like chromium, manganese, silicon, or aluminum. In the steelmaking process, ferroalloys serve multiple functions, including:Refining, Deoxidation, Modification & Control of nonmetallic inclusions & precipitates
As a result, they enhance the performance and utility of both steel and cast iron, making them indispensable in modern industrial applications. Among ferroalloys, chromium, manganese, and silicon are the most widely used in steel production.
Production Capacity
IMFA operates six high-capacity furnaces totaling 190 MVA across its two manufacturing facilities in Odisha—Therubali (Rayagada District) and Choudwar (Cuttack District)—making it India’s largest merchant producer of ferro chrome with an annual production capacity of 284,400 tonnes.
To maximize its increased captive power generation capacity, the company is actively exploring opportunities to expand its smelting operations further.
IMFA holds several industry-first achievements, including:
– First private company in India to produce ferro silicon
– First in the Indian subcontinent to manufacture silicon metal using indigenous technology
Today, the company’s strategic focus remains primarily on ferro chrome, leveraging its captive chrome ore mines and power generation facilities to maintain a competitive edge in both domestic and international markets.
IMFA continues to strengthen its leadership in ferro alloys, ensuring a robust, sustainable, and globally competitive future for stainless steel production.
Mining
IMFA’s mining journey began in the 1960s, initially managing multiple quartz mines to support its silicon alloys production. Over time, the company shifted its focus to chrome ore mining, ensuring a fully integrated production cycle where 100% of mined chrome ore is used in-house to support its ferro chrome manufacturing.
At the core of IMFA’s self-reliant business model is a commitment to securing raw material supply through captive chrome ore mines. The company operates a mix of open cast and underground mining operations across Odisha’s Jajpur and Keonjhar districts, meeting its current chrome ore requirement of approximately 0.6 million tonnes per year.
Although India holds less than 1% of the world’s chrome ore deposits, the majority is concentrated in Odisha. IMFA’s mining operations, which started with a small mine catering to only part of its needs, have expanded significantly, now securing access to 21 million tonnes of deposits.
The company’s mining leases include:
- Sukinda Mine – Lease valid until 2049
- Mahagiri Mine – Lease valid until 2055
- Right of First Refusal – Under the MMDR Amendment Act 2015, ensuring IMFA’s competitive position in future mining auctions.
Although the Nuasahi Mine is currently closed, plans for an extension are underway to further strengthen IMFA’s long-term raw material security.
IMFA has transitioned from open cast to underground mining, adopting more environmentally sustainable and efficient extraction methods. In 2016, IMFA became the first company to commence underground mining in Sukinda Valley, with its first stope blasting taking place on January 14, 2016.
Looking ahead, IMFA aims to gradually increase total mining output to 1.2 million tonnes per year, in alignment with its plans to expand smelting capacity and strengthen its integrated ferro alloys production model.
With a long-term mining strategy, secured raw material reserves, and a focus on sustainable operations, IMFA continues to reinforce its position as a leader in India’s ferro alloys industry.
Power
Given the power-intensive nature of its core operations, IMFA established a captive power generation system, which has evolved over time with technological advancements and capacity expansions. Today, electricity is a critical pillar of the company’s integrated business model, ensuring cost efficiency, reliability, and operational resilience.
IMFA’s total captive power generation capacity stands at 204.55 MW, comprising:
- 50 MW coal-based unit
- 30 MW dual-fuel unit (operating on a combination of coal and furnace gas)
- 120 MW coal-based unit
- 4.55 MW solar power unit
While the Power Business Unit primarily supports the company’s internal energy needs, excess power is supplied to the State Grid, contributing to grid stability—aided by the company’s proximity to a major load center.
IMFA prioritizes environmentally responsible operations, incorporating advanced energy-efficient technologies such as:
- Furnace gas utilization for power generation
- Circulating Fluidized Bed Combustion (CFBC) boiler technology in the 30 MW & 120 MW units to improve efficiency and reduce emissions
- Fly ash recycling initiative – Converting fly ash into bricks and low-density aggregates (a sustainable alternative to stone chips)
By integrating sustainable energy solutions and enhancing operational efficiency, IMFA continues to reinforce its self-sufficiency, cost competitiveness, and commitment to a greener future.
Low Density Aggregate (LDA)
IMFA is dedicated to resource efficiency and environmentally responsible operations, integrating innovative sustainability initiatives into its business model. The company has implemented a zero-effluent water discharge system and established automated production units capable of manufacturing 100,000 bricks per day using fly ash and slag—a significant step toward waste utilization.
In 2014, IMFA became the first company in India to set up a Low-Density Aggregate (LDA) or sintered fly ash aggregate plant in Choudwar, Cuttack District, Odisha, with an installed capacity of 1,75,000 MT per year.
LDA is a pioneering fly ash-based product composed of over 90% fly ash, offering an eco-friendly alternative to natural coarse aggregates (stone chips) in concrete production. This innovation not only reduces dependence on natural resources but also significantly lowers the dead weight in civil construction projects, improving structural efficiency and sustainability.
Through these initiatives, IMFA continues to lead the industry in environmental responsibility, waste reduction, and sustainable resource utilization, reinforcing its commitment to a greener and more efficient future.
Financials
For Q3FY25
- Sales: ₹643 crores vs. ₹685 crores in December 2023, down 6.13%.
- EBITDA: ₹128 crores vs. ₹159 crores, down 19.5%.
- PBT: ₹123 crores vs. ₹146 crores, down 15.75%.
- Net Profit: ₹93 crores vs. ₹109 crores, down 14.68%.
For the year Ended March 24
- Sales: ₹2,780 crores vs. ₹2,676 crores in December 2023, up 3.89%.
- EBITDA: ₹587 crores vs. ₹488 crores, up 20.29%.
- PBT: ₹372 crores vs. ₹226 crores, up 64.6%.
- Net Profit: ₹516 crores vs. ₹324 crores, up 59.26%.
- Debt reduced from ₹341 crores in March 2023 to ₹184 crores in March 2024, down 46.04%.
- Total investments increased from ₹264 crores in March 2023 to ₹372 crores in March 2024, up 40.91%.
- Cash & equivalents stood at ₹97 crores as of March 2024.
- ROCE remains strong at 24% as of March 2024.
Management’s comments
Updating…
Sectorial Outlook
Ferro chrome, containing 50-70% chrome, is a crucial alloy in stainless steel production, imparting its non-corrosive properties. Over 80% of global ferro chrome output is consumed by the stainless steel industry, making its demand closely tied to stainless steel production. In 2023, global chrome ore production reached 39.66 million tonnes, with South Africa contributing over 60% of the total output, while India ranked third with 3.33 million tonnes, primarily sourced from Odisha. Despite accounting for less than 1% of the world’s chrome ore reserves, India remains a significant player in the global ferro chrome market.
Global ferro chrome production in 2023 stood at 15.35 million tonnes, registering a 4.7% year-on-year growth. China remained the largest producer with 7.36 million tonnes, while India’s production surged by 17.8% to 1.52 million tonnes, reinforcing its expanding role in the global supply chain. The global ferro chrome market, valued at $16.92 billion in 2023, is expected to reach $17.81 billion in 2024 and further grow at a CAGR of 5.1% to $26.55 billion by 2032. India’s ferro chrome production, mainly concentrated in Odisha, along with smaller capacities in West Bengal and Andhra Pradesh, continues to benefit from growing domestic stainless steel consumption, driven by rapid urbanization and infrastructure development. While exports remain a key contributor, the emphasis on domestic market expansion is increasing as the government prioritizes manufacturing and self-reliance.
In 2023, global stainless steel melt shop production rose by 4.6% year-on-year to 58.44 million tonnes, reflecting the industry’s focus on technological innovation and sustainability. China led with 36.67 million tonnes, marking a 12.6% increase, while other regions such as Europe, the USA, and parts of Asia saw declines due to subdued demand. With weak domestic consumption, Chinese producers boosted exports by nearly 30% in 2023, intensifying competition in global markets. The global stainless steel market, valued at $121.72 billion in 2023, is projected to expand at a CAGR of 8.5% during 2024-2032, driven by increased use in automotive components, construction, and renewable energy projects.
India continues to outperform global stainless steel demand growth, with an expected 7.7% rise in 2024, significantly outpacing the global average of 1.9%. This growth is supported by robust government-led infrastructure investments, rising private sector spending, and urbanization trends. The Indian stainless steel market, valued at $17.45 billion in 2024, is projected to grow to $31.9 billion by 2034, expanding nearly 1.8 times its current size. While India has an installed stainless steel production capacity of 6.6-6.8 million tonnes, capacity utilization remains below optimal levels. CRISIL Research forecasts that domestic stainless steel demand will reach 4.6 million tonnes by 2025, further strengthening the demand for ferro chrome.
With rising infrastructure investments and increasing applications of stainless steel in key sectors such as construction, manufacturing, and transportation, demand for ferro chrome is set to grow. India’s position as a leading ferro chrome producer, coupled with its growing stainless steel industry, ensures that it remains a key player in the global market. The country’s strong production base, coupled with expanding domestic demand and export potential, positions it well for continued growth in the ferro chrome industry.
Additional note
IMFA was first presented on June 18, 2023, when it was trading at ₹284. Since then, the company price surged to a 52-week high of ₹999, delivering an impressive 251% return before retreating to its current levels.
Conclusion
IMFA is India’s largest fully integrated ferro alloy manufacturer, with 62 years of industry experience in the metal and mining sector. The company operates two state-of-the-art manufacturing facilities in Therubali and Choudwar, Odisha, each equipped with three furnaces, supporting a smelting capacity of 190 MVA. With 204.5 MW captive power generation (including 4.55 MW solar) and extensive chrome ore mining reserves, IMFA remains a dominant player in the ferro chrome industry. As stainless steel demand continues to rise, the company’s strategic expansion, improving EBITDA margins, and strong market valuation position it as an attractive company to explore.