The main challenge in the Financial year 2022-2023 was the volatility
in the prices of raw materials and finished products.
The industry also faced challenges related to increasing competition
from other countries.
Manganese ore, power and coke are the key cost drivers in the
production of manganese-based Ferro alloys accounting for ~35-40%, ~20-30%, and ~10-15% of
the overall cost respectively. With coal prices remaining at elevated levels, power
tariffs in key producing regions in West Bengal and Andhra Pradesh have risen by ~20%
year-on-year (YoY) in Fy2023.
These sharp increases in energy costs have adversely impacted the
industry's cost competitiveness. However, going forward the energy prices are expected to
cool down and become moderate.
EMERGING FROM THE SHADOWS
Our industry faced major challenges related to government regulations,
including environmental regulations and import duties on raw materials. These regulations
increased the cost of doing business and made it increasingly difficult to remain
competitive.
OVERCOMING CHALLENGES
Overall, the manganese alloy industry in India faced several challenges
in the current financial year, but we were able to adapt and find innovative ways to
remain relevant and competitive in the volatile marketplace.
OUR PEOPLE - OUR STRENGTH
A professional approach and a sustainable outlook have played a
critical role in helping the manganese alloy industry to thrive in the long run. Our
professionals implemented best practices, such as ensuring safety measures are in place,
maintaining high-quality standards, and developing efficient processes to minimize costs
and maximize productivity. This approach has helped us to reduce environmental impact,
improve social responsibility, and create long- term value for stakeholders.
STRATEGY FOR SUSTAINABLE GROWTH
By adopting sustainable production practices, investing in research and
development, we have managed to develop more efficient and eco-friendly production
processes, as well as helped building stronger relationships with local communities and
stakeholders.
Furthermore, it helped us to anticipate and mitigate risks, such as
fluctuations in raw material prices, supply chain disruptions, and regulatory changes. By
being proactive in addressing these risks, we were in a better position themselves for
success in the long run.
Overall, a professional and sustainable approach has helped us at
Maithan to build resilience, drive growth, and remain competitive in a rapidly changing
business environment.