Vijay Sankar, Chairman, The Sanmar Group at a press conference in Chennai.
| Photo Credit:
BIJOY GHOSH
Cabot Sanmar, a joint venture (JV) between Cabot Corporation, USA, and The Sanmar Group, India, is investing ₹220 crore ($25 million) for brownfield expansion of its fumed silica manufacturing facility at Mettur, near Salem.
The company plans to double the capacity at the plant to meet growing domestic demand and expects to commission the unit in the fourth quarter of calendar year 2027.
CAB-O-SIL the JV’s product is used across a wide range of applications including pharmaceuticals, food, paints and coatings, adhesives and sealants, personal care, crop protection, among others. While almost 30 per cent of the fumed silica goes toward the pharma industry, around 70 per cent is in chemical form across other use cases.
Speaking to businessline on the sidelines of the announcement, Vijay Sankar, Chairman, The Sanmar Group, said that the expansion is in line with long-term capacity planning given the strong domestic demand they see for the product. “We are also very committed to manufacturing in India and not just importing and trading,” he said.
The Chairman is particularly excited about their track record with JVs.
Sanmar Group has five equity JVs with American enterprises and Cabot-Sanmar is the youngest at 30 years. “Our oldest JV turns 50 this year. I don’t think there is another example of an equity JV between an Indian and an American company where JV has succeeded for so long,” said Sankar.
Sean Keohane , President and CEO, Cabot Corporation and Vijay Sankar, Chairman, The Sanmar Group at a press conference in Chennai.
| Photo Credit: BIJOY GHOSH
The larger Sanmar Group is into various businesses including commodity chemicals, specialty chemicals, engineering, foundry and shipping among others. All businesses are growing, but in the last few years, it has been tough in the commodity business because of Covid, global volatility, the tariff war, and excess of capacity from China, Sankar said. “Hopefully that should ease out in the next few years,” he added.
Cost pressures
He acknowledged cost pressures due to the war and hoped for early resolution. “If the war holds on too long and the volatility continues, the growth could be impacted, but I think demand should hold,” he said.
Interestingly, the JV’s product fumed silica also has use cases in the semiconductor and energy storage space. While it is used in the Chemical Mechanical Polishing (CMP) process of making semiconductors, it is also a surface-area material for strengthening battery energy storage systems. “This is an area where Cabot has been a leader going back many years. As fabs get established here in India, I think there’s an opportunity for fumed silica to play an important role,” Sean Keohane, President and CEO, Cabot Corporation, said.
Krishna Kumar Rangachari, Director, Cabot Sanmar , estimates the growth of fumed silica industry to be at around 8-10 per cent. The key raw material is quartz or silica sand and is crystalline in nature and is hence independent of the current ongoing petrochemical crisis. It also comes from South East Asia so the supply chain is also stable, he added.
Published on April 1, 2026
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