The global manganese market is on a significant upward trajectory, fueled by the escalating demand for steel across construction, infrastructure, and automotive sectors. Its critical role in enhancing steel’s hardenability and tensile strength positions manganese as a cornerstone in steel production, capturing a substantial market share. Emerging economies are witnessing a boom in construction and infrastructure projects, further amplified by the automotive industry’s quest for high-strength steel. The burgeoning electric vehicle sector is spurring demand for manganese in lithium-ion batteries, opening new avenues for market expansion. The Asia-Pacific region, marked by rapid urbanization and infrastructural advancements, dominates the market. Market segmentation reveals alloying additives and silicomanganese as prominent segments, owing to their critical application in steel manufacturing and battery production. Despite facing challenges like environmental concerns and regulatory policies, the manganese market is poised for substantial growth, underpinned by its vital role in steel production and burgeoning battery technology applications.

Went through the Q1 FY 25 Earnings call, here are some notes

Stable demand
Detergents – Moderation during monsoon – picked up after winters – remains robust
Chinese soda ash demand strong during Jan – May
Solar glass/ Lithium carbonate – strong within china, Americas – largely flat

Chinese soda ash operations – slightly reduced due to issues in inner Mongolia, also possible quality issues
Overall demand-supply remains fairly balanced – likely to continue for couple of quarters

During this quarter, commissioned 2.3L Tons of soda ash capacity – this capacity will come on screen in coming months.

Export market

• US market saw sequentially lower volume, slight increase QoQ
• UK, stable volume prices softened
• Kenya – Marginally higher volume and prices sequentially

Capex plans on schedule, Bicarbonate capacity of 70K and Pharmaceutical salt by second half of year in UK

Q&A

• US Peer announces price increase
  Domestic market – More clarity when new contracts are booked in Jan. Expected increase 10-20 USD EBITDA per ton
  UK – margins to remain similar through the year

Kenya – Slightly higher transportation and shipping costs – expect to normalise

Soda ash demand – Fully sold out – expected to remain fully sold out in future

Capacity expansion of soda ash
70 K is already on screen
Another 70K to come online around Mid Oct
Aggregate capacity after that – 2.9 L Ton capacity

The additional 70K capacity should get fully absorbed during the year and the additional 70K expected to get fully absorbed by Q1 next year, maybe earlier.

Demand outlook

• Europe, muted demand
• Growth in demand from China – be watchful whether that continues – these could be softness in future
• South/ North America – Lithium prices are at bottom – Solar glass, supply is ahead of demand

Soda ash demand continues to be fine, Market conditions seems to have bottomed out and should start improving.

Overall looks balanced upto Q3

Margin expansion reasons

• Energy and material cost have trended down
• US – steady production – maintained efficiency and cost line within control

Working capital increase of 800Cr

• Should normalise during the year
• Generally stock up before monsoon
• 170 Cr – warehouse taken on lease

Forecast for the year

• Even if margins remain flat the capacity expansion should give 400Cr up move in EBIDTA
• If market conditions continue to improve – that will be a bonus

Hi everyone,

There has been considerable reduction in wind power budget allocation. Can anyone elaborate whether:

1. Sanghvi will be affected and how significantly over the next 2-3 years?

2. They will keep growing at 30%+ EPS CAGR for comibg years due to business diversification strategies?

Disc: Not invested

From what we know (from previous posters), Ambika has been exporting to Bangladesh for some time. Hopefully, with recent developments and the settling down of the country, we will see a smoother flow of transactions. The article is not too positive, but since the country will need to continue to commercially transact, I would assume the business sector will push for the normalcy that was missing so far. From what I know, India is the largest supplier of raw cotton to Bangladesh, fulfilling over 60% of its raw cotton requirements. The Bangladeshi textile industry employs around 4.5 million workers.

Below some numbers, please recheck.

Agree! In terms of governance and ways of working they punch way above their size. The management is super impressive