Indian Metals & Ferro Alloys Ltd (IMFA) has signed definitive agreements to acquire Tata Steel’s ferro-chrome plant at Kalinganagar, Odisha, for a base consideration of Rs 6.1 billion, the company said in a statement on Wednesday.

The acquisition adds 99 MVA furnace capacity — including 66 MVA operational and 33 MVA under construction — taking IMFA’s total installed capacity beyond 0.5 million tonnes per annum (MTPA). With this deal, IMFA becomes India’s largest and the world’s sixth-largest ferro-chrome producer.

Spread across 115 acres, the Kalinganagar facility currently houses four furnaces capable of producing 100,000 tonnes per annum, a figure expected to increase to 150,000 tonnes once a fifth furnace is commissioned. The plant’s proximity to IMFA’s captive chrome ore mines is expected to deliver significant cost savings and operational synergies.

The transaction, which is subject to regulatory approvals, is anticipated to close within three months.

Calling the acquisition “transformational,” IMFA’s Managing Director Subhrakant Panda said the deal would fast-track expansion plans and strengthen the company’s leadership in the domestic ferro-chrome market amid rising demand. He added that the acquisition will be funded entirely through internal accruals, underscoring IMFA’s strong financial position.

Alongside the announcement, IMFA reported its second-quarter earnings, with net profit declining to Rs 987.7 million from Rs 1.26 billion in the same quarter last year.

Commenting on the performance, Panda noted, “Ferro-chrome prices rose sharply towards the end of the second quarter, driven by higher chrome ore costs for non-integrated producers and production cuts in South Africa. While this impact is partially reflected in our current results, we expect to see the full benefit in the ongoing quarter, supported by higher benchmark and spot prices.”

The acquisition marks a major step in IMFA’s long-term growth strategy and strengthens its role as a key player in India’s ferro-alloy and steel value chain.