Indian Metals and Ferro Alloys Ltd (IMFA) 63rd AGM & Annual Report for FY 2024-25

• Indian Metals and Ferro Alloys Ltd (IMFA) is India's leading fully integrated producer of ferro chrome, and a trusted partner to stainless steel producers worldwide.
• Indian Metals & Ferro Alloys Ltd (IMFA) was established in 1961 by Dr Bansidhar Panda, a research scientist turned entrepreneur, and Mrs Ila Panda. 
• Together, they laid the foundation for an enterprise which took pride in its Odia roots while driving self-reliance in the core manufacturing sector and providing livelihood in a remote area of the State.
• Navigated challenging times to emerge as the country’s leading fully integrated producer of ferro chrome, and are now poised for rapid growth as scale up chrome ore raising and increase smelting capacity while pivoting towards hybrid renewable energy. 
• Long term debt free Balance Sheet and relationship with customers built over decades are instrumental in charting the way ahead.
• The greenfield ferro chrome project at Kalinganagar is on course to be commissioned by mid-2026 and will firmly establish us as the market leader while the foray into ethanol marks entry into a rapidly growing sector with immense potential.
• Operations span the entire value chain from captive chromite mining and power generation to smelting and exports of ferro chrome, ensuring efficiency, self-reliance, and quality control at every stage.
• Resilient Demand Backed by Long Term Contracts 
• Significant share (>70%) of ferro chrome sales is against long term contracts with leading producers globally leading to off-take assurance. 
• Moreover, monthly / quarterly reset in pricing provides stability while following market trends. 
• Fully Integrated Business Model 
• Fully integrated operations with captive chrome ore and power translates to operational stability and superior margins as compared to non-integrated peers.
• Marquee Customers 
• IMFA’s strong focus on quality has helped it build a solid global reputation. 
• Its valued clients include international leaders such as POSCO (South Korea), Tsingshan Group (China), E-United Group (Taiwan), and Marube jni Corporation (Japan), Zhenshi Holding Group as well as major Indian stainless steel producers like Shri Balaji Industrial Products Limited, Rimjhim Ispat, Shyam Metallics and BRG Steel, among others
• Operate two manufacturing complexes in Odisha, equipped with six submerged arc furnaces and a combined smelting capacity of 284,000 tonnes per annum. 
• Backed by captive chromite mines at Sukinda and Mahagiri and captive power plants with a total installed capacity of 204.55 MW, are able to maintain uninterrupted production and cost competitiveness. 
• Export the majority of highquality ferrochrome output to stainless steel manufacturers across Asia, Europe, and other key markets. 
• Long-standing customer relationships and focus on value-added products have established us as a trusted supplier in the global ferro alloys industry.
• Transitioning towards Clean Energy As part of our renewable energy transition, IMFA has signed a 25-year Power Purchase Agreement (PPA) with JSW Green Energy to procure 70 MW of clean energy for captive use.
• Further, Company has also signed a binding term sheet with Ampin Energy Utility One Private Limited to supply hybrid renewable energy with 40 MW contracted demand (58 MW each Solar AC and Wind capacity). Discussions are ongoing to sign related documents such as PPA and SSSHA, and the total equity investment will be H 61.60 crore.
• Business Segment Review 
• Mining 
• IMFA operates two chrome ore mines dedicated to meeting its own production needs, reflecting its policy to prioritise value addition. 
• The company’s strong focus on sustainable mining and safety is backed by significant investment in modern technology and equipment. 
• Ferro Alloys 
• IMFA’s smelting business is primarily focused on exports, with over 91.35% of its ferrochrome being sold to South Korea, China, Taiwan, and Japan. 
• Due to strong, long-term relationships with stainless steel producers and a customer-focused approach, the company enjoys steady demand and stable operations.
• Strengthening the core, expanding horizon 
• Commenced work on the first phase of the 100,000 tpa ferro chrome greenfield expansion at Kalinganagar with both furnaces expected to be in operation by H1 of FY27. 
• This is a significant project which will increase smelting capacity by 40%, firmly establishing IMFA as the country’s leading producer of ferro chrome. 
• Moreover, the additional output will be largely directed at the domestic market which is growing at a rapid clip. 
• Also venturing into ethanol production which holds tremendous promise as India looks to reduce its fuel import bill and boost farmers’ incomes through an ambitious fuel blending programme. 
• Taking advantage of available land and bulk raw material handling infrastructure at Therubali, putting up a 120 KLD plant which will be commissioned in early 2026. With ethanol blending expected to be increased to at least 25%, believe this project will be value accretive over the long term.
• IMFA’s net worth stood at ₹2,322.29 Crore as on 31st March, 2025, vis-à-vis ₹2,079.34* Crore as on 31st March, 2024.
• Gross Block 
• The Company’s gross block of fixed assets stood at ₹1,993.78 Crore as on 31st March, 2025, vis-a-vis ₹1,888.76 Crore as on 31st March, 2024.
• Investments:  908.46cr
• Net cash generated from operating activities: 585.35cr Vs 459.57
• Capital Work In-Progress 
• IMFA’s capital work-in-progress was amounted to ₹74.52 Crore as on 31st March 2025 as against ₹77.88 Crore as on 31st March, 2024.
• Envisioning the future 
• A strong Balance Sheet is giving us the confidence to embark upon ambitious growth and diversification plans. 
• Aim to break into the Top 10 list of ferro chrome producers, and synergise inherent resilience with operational excellence to deliver superior performance. 
• Coinciding with the nation’s rise as the fastest growing large economy which is currently ranked fourth in the world, Company too will make its presence felt in the times to come.
• Industry Overview 
• Global Ferro Chrome Industry 
• Ferro Chrome is an essential input in the production of stainless steel as it imparts the non-corrosive property; thus, stainless steel accounts for over 80% of global ferro chrome consumption. 
• It is primarily produced in submerged electric arc furnaces with chrome content ranging from 50-70% depending upon the grade of chrome ore used. 
• In CY 2024, global high carbon ferro chrome production was 17.58 million tonnes with China retaining pole position with an output of 8.87 million tonnes while India produced 1.32 million tonnes. 
• The global ferro chrome market was valued at US$ 20.05 billion in CY 2024 and is expected to register a CAGR of 5.6% through CY 2037
• Indian Ferro Chrome Industry 
• India’s ferro chrome production in CY 2024 stood at 1.42 million tonnes, 6% lower than the previous year on account of raw material constraints and sluggish demand. 
• The stainless steel market experienced noticeable weakness towards the end of the year on account of macroeconomic factors, resulting in downward pressure on ferro chrome prices. 
• Moreover, chrome ore availability was limited which led to production cutbacks – primarily by those ferro chrome producers reliant on bought out ore or conversion contracts. 
• Ferro Chrome prices were at their lowest in recent times during the first quarter of CY 2025 and have gradually recovered since bolstered by high chrome ore prices and revival in demand.
• Global Chrome Ore Industry
• In CY 2024, global chrome ore output reached 39.20 million tonnes registering a 9% growth over the previous year. 
• South Africa remained the leading producer accounting for over 60% of the total output, while India maintained its position as the thirdlargest contributor producing 3.41 million tonnes.; additionally, the CIS and Middle East together produced 5.19 million tonnes. Occurrence of chrome ore reserves is heavily concentrated with >95% found in South Africa and Kazakhstan, and distortion in trade flows due to local conditions and policy action can have unpredictable consequences.
• Indian Chrome Ore Industry 
• The estimated value of chrome ore raising in FY 2024-25 was around 4759 Crore, accounting for 3.7% of India’s total metallic mineral output. 
• The production of chrome ore for FY 2024-25 reached 3.04 million tonnes, with Odisha contributing 100% of the national output. 
• Increasing demand for stainless steel on account of infrastructure development, construction activities, and urbanisation is leading to more demand for ferro chrome and, consequently, chrome ore.