Cabot Sanmar, the joint venture (JV) between Cabot Corporation (USA) and The Sanmar Group (India), announced a ₹220 crore brownfield expansion of its fumed silica manufacturing facility at Mettur near Salem, Tamil Nadu. Through the expansion, the company plans to double the plant’s production capacity to meet the growing demand for fumed silica across various industries. The new capacity is expected to be commissioned in the fourth quarter of calendar year 2027.
Wide Applications Across Multiple Industries
The JV manufactures CAB-O-SIL fumed silica, a specialty material widely used across industries. The product finds applications in pharmaceuticals, food processing, paints and coatings, adhesives and sealants, personal care products, and crop protection chemicals. Currently, nearly 30% of the company’s fumed silica output is supplied to the pharmaceutical industry, while around 70% serves diverse chemical-based applications across multiple industrial sectors.
Long-Term Strategy to Strengthen Domestic Manufacturing
Vijay Sankar, Chairman of The Sanmar Group, emphasized that the expansion aligns with the group’s long-term capacity planning. According to Sankar, the company sees strong and sustained domestic demand for fumed silica. He also reaffirmed the group’s commitment to local manufacturing. “We are very committed to manufacturing in India and not just importing and trading,” Sankar said.
Strong Track Record of India–US Joint Ventures
The Sanmar Group has built a strong reputation for long-standing joint ventures with American companies. Currently, the group operates five equity joint ventures with US enterprises, with Cabot Sanmar being the youngest at around 30 years. Sankar highlighted, “I don’t think there is another example of an equity JV between an Indian and an American company that has succeeded for such a long period”.
Diversified Business Portfolio of Sanmar Group
The Sanmar Group operates across several sectors, including commodity chemicals, specialty chemicals, engineering, foundry operations, and shipping. While most businesses are experiencing steady growth, the commodity chemicals segment has faced challenges in recent years. Sankar attributed these difficulties to the Covid-19 pandemic, global economic volatility, tariff wars, and excess production capacity in China. However, he remains optimistic that market conditions will gradually improve in the coming years.
Cost Pressures Amid Global Uncertainty
Despite strong demand prospects, the company continues to face cost pressures driven by global geopolitical tensions and ongoing conflicts. Sankar noted that prolonged volatility could potentially affect growth, although underlying demand for the product is expected to remain stable.
Emerging Opportunities in Semiconductors and Energy Storage
Beyond traditional applications, fumed silica is also gaining importance in advanced technology sectors. According to Sean Keohane, President and CEO of Cabot Corporation, the material plays a crucial role in semiconductor manufacturing and battery energy storage systems. Fumed silica is used in the Chemical Mechanical Polishing (CMP) process, an essential step in semiconductor fabrication. Additionally, its high surface-area properties help enhance the performance and durability of battery energy storage systems. “As semiconductor fabs get established in India, fumed silica could play an important role,” Keohane said.
Industry Growth Outlook
Krishna Kumar Rangachari, Director at Cabot Sanmar, estimates that the global fumed silica market will grow at around 8–10% annually. He also highlighted the stability of the raw material supply chain. As reported by thehindubusinessline.com, the primary raw material used for fumed silica production is quartz or silica sand, which is crystalline in nature and largely independent of petrochemical market fluctuations. Moreover, the material is sourced from Southeast Asia, ensuring a relatively stable and reliable supply chain.
