One of the leading paints manufacturers in India, Asian Paints on Monday entered into a Memorandum of Understanding (MoU) with the Gujarat government to set up a manufacturing facility in Dahej. The MoU was signed through its newly incorporated wholly-owned subsidiary, Asian Paints (Polymers).
Asian Paints subsidiary will set up the manufacturing facility for Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) at Dahej, Gujarat.
In its regulatory filing, Asian Paints said, "the company will make necessary disclosures on any material developments in this regard from time to time."
Last month, Asian Paints incorporated Asian Paints (Polymers) with a share capital of ₹100 crore.
Last year, the company's board of directors approved the setting up of a manufacturing facility for VAE and VAM in India. For this, Asian Paints announced in October that it will invest ₹2,100 crore over a period of three years.
The installed capacity of the said manufacturing facility would be 100,000 tons per annum for VAM and 150,000 tons per annum for VAE. VAM is a key input for manufacturing VAE.
In its regulatory filing on October 20, 2022, Asian Paints revealed that VAE is considered to be the emulsion of the future, and the key constituent for manufacturing environment friendly paints. VAE offers better paint properties and can significantly improve paint performance in customer-facing attributes.
Currently, Asian Paints already imports VAE & VAM for its internal consumption. This would be a key backward integration project for the company.
To manufacture VAM, the company has also entered into a technology and other allied agreements with KBR.
On BSE, Asian Paints' share price closed at ₹2,827.35 apiece down by ₹7.95 or 0.28% on Monday. The company's market cap is over ₹2.71 lakh crore.
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