Tata Chemicals plans major silica capacity expansion in India

Mumbai, India – Tata Chemicals is preparing a significant expansion of its precipitated silica production capacity in India, with plans to add two new units in Cuddalore, in the southern state of Tamil Nadu and Mithapur, in the western state of Gujarat.

In a 21 Nov stock exchange filing, the Indian chemicals supplier said it is investing INR7.75 billion (€75 million) in expanding precipitated silica manufacturing capacity in Cuddalore.

The investment will include the addition of 50 kilotonnes per annum (ktpa) of silica at the facility, representing an 86% increase from the currently capacity of 13.8ktpa.

To be constructed over the next 27 months, the unit will support growing demand for speciality silica in rubber and automotive tire industry, said the chemicals major.

Earlier in the month, managing director and CEO R Mukundan said the group expected to also add silica capacity at its flagship plant in Mithapur.

In a 3 Nov earnings call, Mukundan said the Mithapur expansion would add roughly 50ktpa of capacity but noted that further details will be announced by the year-end.

According to its website, Tata Chemicals currently produces high-dispersion precipitated silica in India, used in tire treads, non-tire rubber goods, oral care, and industrial applications.

The expansion will sit alongside wider domestic investments, including additional soda ash and bicarbonate capacity, which have been described by the company as “three vectors of growth”.