Indian Metals & Ferro Alloys (IMFA) has announced ambitious expansion plans that will be funded without raising additional debt, according to Managing Director Shubhrakant Panda. The company aims to maintain its strong financial position while significantly increasing its production capacity.

Expansion Details

IMFA is set to construct a new 100,000-tonne-per-annum ferrochrome unit in Kalinganagar, Odisha. This expansion project comes with a substantial investment of Rs 850-900 crore. The company has outlined a clear timeline for the project:

• The first furnace is expected to be commissioned by June 2026
• Total ferrochrome production capacity will increase from 260,000 tonnes to 360,000 tonnes annually

Chrome Ore Mining Expansion

In addition to the ferrochrome unit, IMFA is also expanding its chrome ore mining capacity:

• Initial increase from 6 lakh tonnes to 9 lakh tonnes
• Plans for a second phase to reach 12 lakh tonnes

Future Growth Prospects

The company's growth plans don't stop there. IMFA has received in-principle approval from the Odisha government for an additional 200,000-tonne capacity expansion in a second phase, further solidifying its position in the market.

Financial Strategy

Shubhrakant Panda emphasized the company's commitment to financial prudence:

• IMFA will fund the expansion without raising debt
• The company aims to maintain a debt-equity ratio below 0.5
• This strategy leverages IMFA's current zero long-term debt position and strong cash generation

Market Response

The market has responded positively to IMFA's expansion plans and financial strategy. On the day of the announcement, IMFA's shares closed 1.02% higher at Rs 1,174.00 on the National Stock Exchange (NSE).

This strategic move by IMFA demonstrates the company's confidence in its financial strength and future growth prospects in the ferrochrome and chrome ore mining sectors. By maintaining a conservative debt policy while pursuing significant expansion, IMFA is positioning itself for sustainable long-term growth in the metals and ferro alloys industry.

Indian Metals & Ferro Alloys Limited (IMFA), a leading ferro alloys producer, has made a significant move towards sustainable energy sourcing by signing a new 70 MW renewable energy Power Purchase Agreement (PPA) with JSW Renew Energy Twelve Limited. This development comes after the termination of previous power agreements, marking a strategic shift in IMFA's energy procurement strategy.

New Agreement Details

The fresh PPA and Share Subscription and Shareholders Agreement (SSHA) were executed on September 10, 2025, between IMFA, JSW Neo Energy Limited (as the Promoter), and JSW Renew Energy Twelve Limited (as the Power Producer). Under this arrangement, IMFA will receive 70 MW of renewable power supply, comprising 55 MW AC of solar capacity and 108 MW of wind capacity.

Financial Implications

As part of the agreement, IMFA's investment has increased from the previously planned Rs 83.26 crore to Rs 85.38 crore. This investment will be made in one or more tranches, with IMFA set to acquire a 26% stake in the power producer upon completion of specified milestones related to power generation and supply.

Strategic Benefits

The new agreement is expected to enhance IMFA's commitment to sustainable operations while ensuring a stable power supply for its ferro alloys production. The 25-year validity of the agreement, starting from the Commercial Operation Date, provides long-term energy security for IMFA.

Regulatory Compliance

This move aligns with IMFA's efforts to comply with captive status requirements. The company has disclosed these developments in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Project Timeline

The renewable energy project is anticipated to be completed in two phases, with target dates set for June 2026 and October 2026. This phased approach is likely to ensure a smooth transition to renewable energy sources for IMFA's operations.

Corporate Governance

The SSHA includes provisions that require IMFA's consent for any changes in the capital structure of the power producer or for dealings with affiliates, ensuring IMFA maintains significant oversight in the venture.

This strategic move by Indian Metals & Ferro Alloys Limited underscores the growing trend in the industrial sector towards adopting renewable energy solutions, potentially setting a benchmark for other players in the ferro alloys industry.