Andhra Pradesh has approved a major manufacturing investment that strengthens the state's status as one of India's fastest-growing destinations for metallurgy and metal production. The state government provided Berry Alloys Ltd. with a plot of 93.43 acres to establish an integrated complex for manganese and steel rolling materials worth 1200 crore rupees in the Vizianagaram district, in the growing hub of Bobbili.
Planned Project Contribution
This project is designed to create 813 direct jobs and strengthen the developing metal value chain in the state. These investments come amid India's preparation for significant expansion in steel production over the next decade.
Need for Manganese
National steel policy aims to achieve an annual steel production capacity of 300 million tonnes by 2030, nearly double the current figures. This growth is projected to sharply increase the demand for manganese—a critical alloying element that improves the strength, hardness, and wear resistance of steel.
Significance of Ferroalloys
Manganese ferroalloys are essential raw materials for manufacturing structural steel, automotive steel, railway tracks, defense equipment, and engineering products. As steel plants increasingly switch to Direct Reduced Iron (DRI) routes to reduce emissions, the demand for high-quality manganese components is expected to grow further.
Berry Alloys Operations
Berry Alloys is among the recognized producers of ferroalloys in India, manufacturing ferromanganese, silicomanganese, and other specialized alloys for domestic and international steel companies. The company already has manufacturing facilities in Vizianagaram and exports its products to markets in Asia, the Middle East, Europe, and North America, leveraging Andhra Pradesh's proximity to the port of Visakhapatnam. Furthermore, the company is a member of the International Manganese Institute (IMnI).
Integration of Production Facilities
The new facility will integrate manganese synthesis production, a DRI plant, and a carbon paste plant, all supported by its own 115 MW power plant. The project will ensure an annual output of 0.5 million tonnes of manganese synthesis, approximately 330,000 tonnes of DRI, and 60,000 tonnes of carbon paste, forming an integrated production ecosystem instead of exporting raw materials.
Land Allotment Terms
The state government approved the allocation of land at a concessional rate of 77.25 lakh rupees per acre, based on recommendations from the State Investment Promotion Board (SIPB). This approval covers 90 acres of industrial plots plus 3.43 acres of adjacent land to create a single production complex.
Regional Development Strategy
The project also reflects Andhra Pradesh's strategy to utilize the mineral wealth of the northern part of the state to move up the production chain. The government specifically noted the abundance of manganese ore in the region and emphasized that this investment will significantly expand the production of manganese synthesis—a key raw material for steel and alloy steel production.
State's Positioning in the Global Market
Berry Alloys joins a growing list of investments transforming Andhra Pradesh into one of India's leading centers for steel and metal production. The state already hosts the planned integrated steel plant by ArcelorMittal Nippon Steel in Anakapalle, alongside a developing ecosystem of ferroalloys, secondary metals, advanced materials, and renewable energy projects. With rich mineral resources, deep-sea ports, reliable logistics, and proactive industrial policy, Andhra Pradesh positions itself as a globally competitive base for the entire steel chain—from raw materials and ferroalloys to finished steel and advanced manufacturing.
Industrial Ecosystem Requirements
The government also required Berry Alloys and its suppliers to register in Andhra Pradesh to ensure the creation of a broader industrial ecosystem and the inflow of GST revenue into the state as production activities expand.
