Asian Paints Commences VAE Production at Dahej Facility
Asian Paints has started commercial production of VAE at its Dahej, Gujarat facility, with a capacity of 1,50,000 tons per annum. This marks a backward integration milestone for captive consumption. VAM manufacturing and ethylene storage facilities are under construction.
The VAE production is for captive consumption and part of a larger integration strategy, which is positive but may not immediately translate to significant revenue growth. The VAM facility is still under construction.
The commencement of commercial production at a new manufacturing facility, especially one that supports backward integration, is a positive development for the company.
Asian Paints Limited announced on September 17, 2026, the commencement of commercial production of Vinyl Acetate Ethylene Emulsion (VAE) at its new manufacturing facility in Dahej, Gujarat. The facility has an installed capacity of 1,50,000 tons per annum.
This VAE production is primarily intended for captive consumption within the company's paint manufacturing units. The company stated that this development is a significant milestone in its ongoing backward integration strategy.
Construction for the Vinyl Acetate Monomer (VAM) manufacturing unit, along with an ethylene storage and handling facility at the same Dahej location, is currently in progress. Asian Paints Limited will provide further updates on any material developments.
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