Indian Metals & Ferro Alloys has acquired a ferrochrome plant in Odisha and announced an investment of Rs 6.1 billion (bn) to integrate and expand operations, with the facility expected to begin contributing meaningfully from FY27. The acquisition forms part of a capacity-led growth phase designed to align production scale with rising domestic stainless steel demand. The company has emphasised operational integration, cost efficiencies and output optimisation as priorities before the full financial impact appears in earnings. The plant at Kalinganagar, previously owned by Tata Steel, is expected to raise annual ferrochrome production capacity from about 0.26 million tonnes (mn t) to nearly 0.4 mn t in FY27, with further scaling planned thereafter. Management anticipates that higher volumes will improve cost absorption in the energy-intensive business and enable a wider customer reach. The benefits from the Rs 6.1 bn investment are expected to start reflecting from the first half of FY27. The timing of the expansion coincides with a structural market shift, with domestic ferrochrome consumption rising alongside stainless steel production driven by infrastructure spending, transportation manufacturing, construction activity and consumer goods demand. The company is working to recalibrate its business mix away from an export-dominated model towards a more balanced export and domestic sales ratio to reduce exposure to global price volatility. Energy efficiency and capacity availability are being treated as decisive competitive factors. Odisha offers proximity to chromite reserves, power-intensive industrial infrastructure and integrated supply chains that should support smoother ramp-up and lower operating costs for the expanded operations. The group is also progressing an ethanol project that is expected to contribute to revenue from FY27, providing additional buffer against cyclical swings in global metals markets. The expansion is likely to bolster employment, ancillary industrial growth and freight movement across rail and port networks while placing the company on a more stable medium-term growth footing.