Cabot Sanmar Invests Rs 220 Crore Expansion for Silica Manufacturing

Cabot Sanmar is strengthening its silica manufacturing footprint with a Rs 220 crore (USD 25 million) investment to expand its fumed silica facility in Mettur near Salem.

This silica manufacturing expansion will double the plant’s capacity, with commissioning expected in the fourth quarter of 2027 to meet rising domestic demand.

The brownfield project highlights the company’s push to scale up production in India’s specialty chemicals sector. Its product, CAB-O-SIL, is used across pharmaceuticals, food, paints and coatings, adhesives, sealants, personal care, and crop protection. Nearly 30 percent of demand comes from the pharma sector, while the remaining 70 percent is driven by broader chemical applications.

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Vijay Sankar, Chairman of The Sanmar Group, said the investment aligns with long-term capacity planning. “We are also very committed to manufacturing in India and not just importing and trading,” he said. He also pointed to the group’s strong track record of joint ventures with American companies, many of which have lasted for decades.

The company is also eyeing future growth areas. Fumed silica is used in semiconductor manufacturing through the Chemical Mechanical Polishing (CMP) process and plays a role in improving battery performance in energy storage systems. Cabot Corporation CEO Sean Keohane said expanding semiconductor fabs in India could open new opportunities for the product.

Krishna Kumar Rangachari, Director at Cabot Sanmar, expects the fumed silica industry to grow at 8–10 percent. He added that silica sand, the key raw material, has a stable supply chain and remains unaffected by current petrochemical volatility.

Despite global cost pressures and ongoing geopolitical tensions, the company remains confident that demand will stay strong.