Asian Paints Commences Commercial Production at ₹2,100 Crore, 1.5 Lakh Tonne VAE Plant in Dahej, Gujarat
Asian Paints Ltd has commenced commercial production of vinyl acetate ethylene (VAE) emulsion at its manufacturing facility in Dahej, Gujarat, with an installed capacity of 1,50,000 tonnes per annum. The company said the VAE produced at the facility is intended primarily for captive consumption at its paint manufacturing operations, as part of its ongoing backward integration initiatives.
The Dahej facility forms part of a broader ₹2,100 crore capex plan announced by Asian Paints in October 2022 to set up manufacturing capacity for VAE and Vinyl Acetate Monomer (VAM) in India, reducing the company's dependence on imported raw materials. VAE is a key emulsion used in paint manufacturing, while VAM is the principal raw material for VAE.
Construction of the VAM manufacturing unit and an associated ethylene storage and handling facility at the same Dahej site is currently in progress. To support the project, Asian Paints Polymers Pvt Ltd, a wholly-owned subsidiary of Asian Paints, had earlier entered into agreements with Gujarat Chemical Port Limited (GCPL) to set up ethylene storage and handling infrastructure at Dahej, including a security deposit of ₹460 crore to be refunded over 17-18 years.