CHENNAI: The Chennai-based diversified Sanmar group has expanded the scope of its 30-year-old joint venture with the US-based Cabot group, that has led to an investment of Rs 220 crore ($25 mn) into a brownfield expansion of fumed silica manufacturing capacity at Mettur, near Salem.
The Sanmar group, which already has five joint ventures with US companies, has been built on strong economic relationships. "The JV with Cabot has expanded our capacity significantly," said Vijay Sankar, chairman, The Sanmar Group, at a press meet here on Wednesday.
Cabot Sanmar’s CAB-O-SIL fumed silica products are widely used across a diverse range of applications including pharma, food, paints and coatings, adhesives and sealants, personal care, crop protection, among others. The expanded capacity will enhance the availability of high-quality fumed silica for domestic customers, supporting India’s growing advanced manufacturing and specialty chemicals sector.
The 10,000-ton fumed silica business valued at Rs 500 crore has been growing at 8-10 per cent, surpassing the GDP growth of India, said Krishna Kumar Rangachari, director, Cabot Sanmar Ltd.
Asked about the geo-political impact on the business, he said the key materials - quartz and silica sand, were available abundantly in South East Asia and so, the West Asia crisis would not create any supply chain problem.
Also, the new expansion would lead to doubling of the current capacity, he added.
Sean Keohane, president-CEO, Cabot Corporation, said the group has 40 manufacturing plants spread across North and South America, Europe, Middle East and India. Characterised by global expansion, Cabot has leveraged the JV model in India and other locations. "It is hard to preserve a JV," he said, even as he sought to highlight the three-decade collaboration with the Sanmar group.
Explaining the applications of the fumed silica, Rangachari said masala powder was unique to India, while the versatile material was used in silicon phone covers to toothpastes. Its physical property lends the powdery finish in use (tablets) while fumed silica's chemical property provides the thickness (tube flow). Pharma demand constituted 30 per cent and the balance was met by chemical applications.
On new-age applications, Keohane said given the semi-conductor thrust in India, the fumed silica provided the chemical mechanical polishing fine feature on wafers and also battery cell packs.
During a function held in Mettur, Keohane, and Sankar, unveiled the foundation stone of the new unit. The brownfield unit is expected to be commissioned in the fourth quarter of calendar year 2027.