Manish Sarda Takes Over IFAPA Reins for 2nd term

New chairman's foremost priority would be to take up the issue of the possibility of removal of Chapter 72 from the FTA with Malaysia with the commerce ministry to stop duty-free dumping of alloys in India

Manish Sarda, Director of International Business, Sarda Energy & Minerals and Sarda Metals & Alloys, has been re-elected Chairman of the Indian Ferro Alloys Producers' Association (IFAPA) for the second consecutive tenure.

Established in 1961, IFAPA is an apex body representing bulk and noble ferro alloys manufacturers in the country. Under the chairmanship of Sir A. Ramaswami Mudaliar, IFAPA started off with just five members - Dandeli Ferro Pvt. Ltd, Ferro Alloys Corporation Ltd. (FACOR), Nagpur Power & Industries Ltd. (Khandelwal Ferro Alloys Ltd.), Tata Iron & Steel Co. Ltd. and Universal Ferro & Allied Chemicals Ltd. Over the decades, the membership has grown to an impressive 88, covering all the major producers in India.

During his previous stints as IFAPA chairman, Sarda had vociferously advocated the need for policy enablers to safeguard the interests of stakeholders in an industry that earns vital foreign exchange for the country. He has urged the government to rethink critical issues such as cushioning producers against exorbitant power costs and waiving import duty on met coke, for instance, so that domestic manufacturers could retain their competitive edge in the global market. A couple of days after the news of his re-election poured in, Sarda spoke to SteelMint on his priorities as the next IFAPA chairman as well as the challenges facing the industry.

Dwelling on his experiences during the previous stints as IFAPA chairman and the association's role in conveying the industry's concerns to the government, Sarda said: "I am grateful for this opportunity to lead such an important and respected organisation. While I do have decades of experience in the ferro alloys industry, I know that as I take up the role of leading this esteemed association again I have much to learn going forward."

"During the years that I have been chairman of IFAPA, we have had good networking with various ministries at the working level like the Ministry of Steel, Ministry of Commerce and Tariff Commission to strengthen our relations and we have been included in different committees as well," he continued. "Besides, we have also strengthened communications and liaisoning with other major industry associations like the Confederation of Indian Industries, Federation of Indian Chambers of Commerce and Industry, The Associated Chambers of Commerce and Industry, Bengal Chamber of Commerce and Industry and Federation of Indian Exports Organisation. I am involved in the Raw Materials Security Committee, which is a CII-led body on raw materials security for the steel industry."

Underlining his priorities upon being re-elected IFAPA chairman, Sarda said: "One of the top reasons an association is successful is that it has a leader who is willing to hear the problems of its members and the valuable suggestions offered by them. I would be more than willing to hear from our members and establish a channel of communication between the different members of the association."

"As a working advancement towards this," he added, "one of the major tasks before me is restructuring the association. I think it is important for an association to restructure itself as times are changing and we are moving into a very-fast paced market scenario. Hence, it is only fair that the association keeps pace with ongoing industrial developments and policy changes."

Low end-user demand, stagnating prices and piling inventories are plaguing the steel and ferro alloys industries. Responding to queries as to what are the main challenges before domestic alloys producers and whether the market could regain lost momentum in the near term, he observed: "To be honest, the ferro alloys industry in India is just surviving, thanks to the duty-free dumping of alloys in India from Malaysia due to the FTA with that country. Malaysia has also subsidised power tariffs to INR 2-2.25/kWh for industries that give them a competitive advantage. So, one of my first priorities would be to recommend and discuss the possibility of removal of Chapter 72 from the FTA with Malaysia with the relevant authorities."

"As such, raw materials scarcity and power costs are hitting the industry hard. In addition, the import duty on low-ash met coke from China and Australia as well as the 2.5% duty on manganese ore - despite the unavailability of suitable grades of coke and ore in India - are highly detrimental to domestic producers. Hence, my priority would be to take up these issues with the ministries concerned," he averred.

However, he sounded a note of optimism too. "Despite these pressing problems, India is still the largest seaborne exporter of silico manganese and the third largest exporter of ferro chrome in the world. Good news is the steel ministry is focusing on making India a sustainable steel producer and is bent on reaching its target of installing 300 MnT of production capacity by 2030-31. This bodes well for the domestic ferro alloys industry," he said.