Indian Metals & Ferro Alloys Ltd (IMFA), a ferrochrome producer, announced an ambitious ₹2,000 crore capital expenditure plan aimed at expanding its core operations, enhancing mining capacity, and foraying into the ethanol production sector. The comprehensive strategy underscores the company’s focus on value addition, diversification, and long-term sustainability.
Kalinganagar Expansion
IMFA will allocate a major portion of the ₹900 crore investment to expand its Kalinganagar facility in Odisha. The company will install two new furnaces with a combined capacity of 1,00,000 tons, aiming to make them operational by 2026. Additionally, it will incorporate a waste heat recovery power plant at the facility to enhance energy efficiency. So far, IMFA has already deployed ₹150–200 crore to kickstart project execution.
Mining Capacity to Rise
To support the expanded smelting operations, IMFA will invest over ₹1,000 crore in enhancing mining capabilities. The goal is to boost output to nine lakh tons per annum by FY26, with a phase-II target of 12 lakh tons. For the current fiscal year, IMFA expects to extract around eight lakh tonnes from its Sukinda and Mahagiri mines.
Diversification into Ethanol Production
In a strategic move to diversify its portfolio, IMFA is entering the biofuel sector with an investment of ₹160 crore in a 120 KLD ethanol plant at Therubali, Odisha. Scheduled to be operational by Q1 of 2026, the plant is designed to leverage IMFA’s existing infrastructure and expertise in process-based industries. Managing Director Subhrakant Panda described the ethanol project as a value-accretive initiative. He said it aligns with the company’s strengths and commitment to green growth.
Balanced Funding and Prudent Financial Strategy
IMFA plans to fund the capex largely through internal accruals, keeping external borrowings minimal. As reported by projectstioday.com, the company aims to maintain a debt-to-equity ratio well below its 0.5 cap. This approach ensures financial stability while supporting aggressive growth.
