Ferroalloys are alloys with iron employed to add chemical elements into molten metal, usually during steelmaking. Ferroalloys impart distinctive qualities to steel and cast iron or serve important functions during production and are, therefore, closely associated with the iron and steel industry, the leading consumer of its products. Ferroalloys are master alloys containing iron and one or more non-ferrous metals as alloying elements. The ferroalloys are usually classified in two groups: bulk ferroalloys (produced in large quantities in electric arc furnaces), and special ferroalloys (produced in smaller quantities, but with growing importance). Bulk ferroalloys are used in steel making and steel or iron foundries exclusively, while the use of special ferroalloys is far more varied. Manganese is used in metallurgical industries in the form of ferro-manganese. Ferro-manganese contains about 80% Mn and 20% Fe. Generally ferro-manganese is produced in blast furnace or an electric furnace. There are no rigid ore-requirements for ferro-manganese produced in a blast furnace. Generally a mixture of different ores, proportional to meet the specification of the final alloy, is used. Two manganese ferroalloys, ferromanganese and silico manganese, are a key ingredient for steelmaking. The high carbon ferromanganese (7.5 % C, 74 -80 % Mn & balance Fe) is the most important grade of ferromanganese, which is produced by carbothermic reduction of high grade Mn-ores (47 - 50% Mn) and a low iron content (6% Fe). The ore should also have low silica (1%) and low phosphorus (0.14 - 0.18 % P). The ore is smelted in an electric furnace with 15 - 20 % coke weight & suitable flux (lime). The modern electric furnace route of ferro-manganese production gives 85 - 90% manganese recovery, MnO dust recycling is possible and a high degree of homogenization, slag control and furnace scabbing is practiced. Percentage of carbon present in Ferro Manganese alloys is of primary importance for steel production. Ferromanganese is widely used in the manufacture of tool steels (upto 0.4% Mn) and structural steel (upto 0.6% Mn) and also of special steels with a high manganese content (upto 12-14% Mn), as well as an alloying addition. Electrolytic high purity ferromanganese finds an increasing use in metallurgical industry as an allowing element and as a deoxidizing agent. Manganese is mostly used in steel production. Total manganese consumption by the steel industry is projected to grow at a CAR of 3.1% over the forecast period 2001-2011. More than 80% of manganese produced across the world is consumed by steel. Therefore, manganese consumption is mainly based on steel demand and is directly influenced by the steel industry. Over the past three years, as steel has witnessed an increase both in production and demand, manganese consumption has also increased simultaneously. The demand for steel has been rising due to ongoing economic boom leading to rapid growth in various industries in the world's two largest populous countries in Asia-Pacific, China and India, with simultaneous increase in production leading to wide fluctuations is steel prices. Other countries in Asia-Pacific such as Japan, South Korea, and Taiwan; Middle East, Eastern Europe, and Latin America have witnessed an increase in steel consumption. Indian ferro alloy sector has a capacity of 3.64 million tonnes. This is sufficient to take to produce more than 150 million tonnes of steel. As against this, the Indian finished steel production was only 59.02 million tonne, though there are plans to scale the steel capacity to 124.06 million tonne by 2011-12 and to about 293 million tonne by 2020. So, the Ferro alloy industry is suffering gross under utilization of capacity, and may remain so in the short to medium term. India produced 1.08 million tons (million) of manganese alloys in 2006-07 according to the IFAPA. Around 2.5 million tons of manganese ore was required for producing this ore. But as the domestic steel industry is trying hard to increase its finished steel production from 48 million in 2006-07 to 60 million by 2010, manganese ore demand and supply gap is predicted by analysts to touch 0.5 million. This shortfall is likely to be met through imports. Domestic manganese ore required for manufacturing high carbon ferromanganese is mainly obtained from Orissa Mining Corporation (OMC), Manganese Ore India Limited (MOIL) and Rungta Mines. India's ferro alloy producers include Nav Bharat Ventures, Ferro alloys corporation, Balasore alloys, Indian metals & Ferro alloys, Sri Vasavi Industries, Tata Steel (Ferro alloys & mineral division), Shyam ferro alloys, Sarda Energy & Minerals, S.A.L. Steel, Jindal Stainless, Rohit Ferro tech. Visa Steel, etc. The huge steel demand from construction, automobile and machinery building sectors due to a growing urbanization and infrastructure, and proper capacity utilization will lead the ferro Alloys Industry to a bright future in the coming years.