Facor Alloys Limited was a ferro alloys manufacturer that turned raw chrome ore, manganese and coal into the essential ingredients that make steel stainless and strong - high carbon ferro chrome and silico manganese - from its six-furnace plant in Andhra Pradesh. When it could no longer secure bank finance because of a legacy legal dispute, it pivoted to a conversion model, processing raw materials supplied free of charge by steelmakers like Tata Steel and billing only for the work done, until the promoter group pulled the lease on the briquetting plant that fed its furnaces and the entire operation stopped dead in October 2023. What remains is a company with no manufacturing, a debt-free balance sheet kept alive by promoter support, and a single overriding task: sell the plant and machinery to pay its bills. # Business segments A single ferro alloys engine that has been fully shut down since October 2023 - the business today is asset monetisation, not production. ## 1. Ferro alloys: a shuttered plant awaiting sale **The company once made the alloys that give stainless steel its strength and corrosion resistance; since the furnaces went cold, the business has been about selling the plant, not running it.** - **Conversion fees, not commodity sales** - in its final operating years, the company largely worked as a toll manufacturer: customers like Tata Steel supplied chrome ore and manganese at the factory gate, and Facor raised bills only for converting those raw materials into finished ferro alloys, insulating it from raw-material price swings. - **Six furnaces, now idle** - the Shreeramnagar plant housed six electric-arc furnaces that turned chrome ore, iron ore and coal into high carbon ferro chrome (50-68% chromium) and silico manganese, with production peaking at roughly 70,000 metric tonnes in FY23 before halving in FY24 and falling to zero in FY25. - **The briquetting plant was the single point of failure** - an intermediary step that compressed chrome ore into furnace-ready briquettes was performed by a plant owned by the promoter-group entity RBS and leased to Facor; when RBS terminated that lease on 11 October 2023, the company had no alternative and shut its manufacturing operations three weeks later. - **One customer dominated the order book** - Tata Steel Ltd. (and its mining subsidiary, later merged into the parent) was the anchor conversion-agreement counterparty, with a contract running from late 2020 through March 2025 that at one point kept the plant operating at full capacity. - **The asset sale is the only remaining transaction** - shareholders approved a plan to monetise substantially all the plant and machinery at Shreeramnagar, and a non-binding agreement with Rawmat Mining and Minerals was signed in June 2025, followed by an asset transfer agreement in August 2025 for ₹47.15 crore, though the definitive sale had not closed by March 2026. # Group structure and partners **A chain of dormant overseas mining subsidiaries, now largely inaccessible to the new management, sits alongside a domestic power subsidiary and a promoter group that both enabled and ultimately ended the manufacturing business.** - **Three layers of overseas entities, none operational** - Facor Alloys holds Facor Minerals (Netherlands) B.V., which holds Facor Turkkrom Mining (Netherlands) B.V., which in turn holds a Turkish mining entity, CATI; all are non-revenue-generating, fully impaired, and the Dutch step-down subsidiary was deregistered in November 2025. - **The new management cannot get the books** - after a change in management in April 2024, the erstwhile promoter director did not respond to requests for financial information from the overseas subsidiaries, forcing the company to file a complaint with the Economic Offences Wing and to exclude those entities from its consolidated FY25 financial statements. - **A corporate guarantee that came home** - the company had guaranteed a Bank of India loan taken by the Turkish step-down subsidiary CATI; when CATI defaulted, Facor had to remit the amount and now carries it as a loan to the subsidiary of ₹8.52 crore, against which nearly the entire sum has been provided for as a credit loss. - **The promoter is landlord, shareholder and lifeline** - Rai Bahadur Shreeram and Company Private Limited (RBS) holds roughly 32% of Facor’s equity, owned the briquetting plant whose lease termination triggered the shutdown, and continues to provide financial support to meet essential obligations.