In fact, the company aims to keep the debt-equity ratio significantly below 0.5. “I doubt we will even get that far it’ll be it’ll be significantly below, given the health of the balance sheet, as well as the cash surpluses that we’re generating, and especially with ferrochrome prices picking up, that will be a further boost to the bottom line,” he emphasised.
IMFA is in the midst of a significant capacity expansion. The first phase involves a new 100,000-tonne-per-annum unit in Kalinganagar, Odisha, with a capital outlay of Rs 850 crore to Rs 900 crore. Construction is proceeding on schedule, with the first of its two furnaces expected to be commissioned by June 2026.
“So that will add about 35% to 40% capacity by next year, which is a significant move. And that will obviously have an impact on both the top line, as well as the bottom line,” he said.
This will boost IMFA’s ferrochrome production capacity from 260,000 tonnes to approximately 360,000 tonnes annually.
Additionally, IMFA is increasing its chrome ore mining capacity from 6 lakh tonnes per annum to 9 lakh tonnes in the first phase, with plans to reach 12 lakh tonnes in the second phase. This enhanced mining output will support the expanded ferrochrome production.
