Silica Surge: AksharChem Scales Up Precipitated Silica Capacity to 18,000 TPA

Image Source : AksharChem

AksharChem (India) Ltd has announced the successful expansion of its precipitated silica manufacturing facility at Dahej, Gujarat, by an additional 6,000 tonnes per annum (TPA). This brings the company’s total installed capacity for precipitated silica to 18,000 TPA, reinforcing its strategic shift toward high-margin specialty chemicals.

Here’s a detailed look at the expansion and its broader significance.

Key Highlights of the Expansion

- The new 6,000 TPA capacity has been added at AksharChem’s greenfield unit in Dahej, a hub for chemical manufacturing in Gujarat
- The facility uses advanced technology to produce high-purity precipitated silica in both powder and granular forms
- This expansion is part of the company’s long-term diversification strategy to reduce reliance on dye intermediates and pigments
- The Dahej plant is designed for zero liquid discharge, aligning with AksharChem’s commitment to environmentally responsible manufacturing

Strategic Rationale and Market Position

- Precipitated silica is a critical input for industries such as rubber, oral care, animal feed, agrochemicals, and food processing
- The global market for precipitated silica is growing at over 7 percent CAGR, driven by demand from tyre manufacturers and personal care brands
- AksharChem’s expanded capacity positions it as one of India’s fastest-growing producers in this segment, with a focus on import substitution and export growth
- The company’s Aksil-branded grades are already gaining traction in both domestic and international markets

Operational and Financial Outlook

- The expansion is expected to improve capacity utilization and operating leverage in FY26
- AksharChem has stabilized operations at its other units and is recovering from past disruptions, including a fire incident at its Vinyl Sulphone plant
- The company continues to maintain a strong balance sheet and stable credit profile, supported by its specialty chemicals pivot

As AksharChem scales up its specialty chemicals footprint, the Dahej expansion marks a pivotal step in its transformation journey—one that blends innovation, sustainability, and global competitiveness.

Sources: Aksil.in, AksharChem India Ltd, News On Projects, June 2025