On Thursday, April 2, 2026, Cabot Sanmar Limited—a high-profile joint venture between the US-based Cabot Corporation and India’s Sanmar Group—announced a ₹220 crore ($25 million) brownfield expansion of its fumed silica plant in Mettur, Tamil Nadu.
This investment aims to double the capacity of the facility to meet surging domestic demand in India’s high-growth pharmaceutical and specialty chemical sectors. The expanded unit is expected to be commissioned by the fourth quarter of 2027.
Fumed Silica: The “Versatile” Essential
The JV’s flagship product, CAB-O-SIL, acts as a high-surface-area thickening and anti-caking agent. Its market distribution in India highlights its critical role in essential supply chains:
- Pharmaceuticals (30%): Used as a glidant to improve powder flow in tablet and capsule manufacturing.
- Chemical Applications (70%): Essential for paints, coatings, adhesives, sealants, personal care products, and crop protection.
- Next-Gen Tech: The product is increasingly used in Chemical Mechanical Polishing (CMP) for semiconductor fabrication and as a performance additive in Battery Energy Storage Systems (BESS).
A Legacy of Strategic Partnership
Vijay Sankar, Chairman of The Sanmar Group, highlighted the expansion as a testament to the longevity of Indo-American corporate ties.
- Youngest JV: Cabot-Sanmar is 30 years old, while Sanmar’s oldest US partnership turns 50 this year.
- In-Country Manufacturing: The group emphasized a shift away from “importing and trading” toward a “Make in India” commitment for specialty chemicals.
Market Dynamics & Growth Outlook
The fumed silica industry is projected to grow at 8–10% annually in India, driven by the expansion of local semiconductor “fabs” and the EV battery ecosystem.
| Factor | Impact on Cabot Sanmar |
| Raw Material | Uses Quartz/Silica Sand, making it independent of the global petrochemical price volatility. |
| Supply Chain | Sourced primarily from Southeast Asia, ensuring a more stable logistical route compared to European or Chinese imports. |
| Industry Headwinds | Global commodity businesses face pressure from Chinese overcapacity and geopolitical conflicts, but demand for high-end specialty chemicals remains resilient. |
The Semiconductor Opportunity
As India establishes its own semiconductor manufacturing facilities (following recent approvals for Tata and CG Power), Sean Keohane, CEO of Cabot Corporation, noted that fumed silica will be a “vital component” in the polishing of wafers. This positioning allows Cabot Sanmar to be a local supplier for the high-precision requirements of the electronics industry.
“As fabs get established here in India, I think there’s an opportunity for fumed silica to play an important role. We are aligned with the long-term capacity planning required for this shift.” — Sean Keohane, President & CEO, Cabot Corporation.