Asian Paints Starts Commercial Production at 1.5 Lakh-Tonne VAE Plant in Gujarat

Asian Paints has commenced commercial production of Vinyl Acetate Ethylene (VAE) at its manufacturing facility in Dahej, Gujarat, marking a significant step in the company’s ongoing efforts to strengthen its internal supply chain.

The facility has an installed production capacity of 1.5 lakh tonnes per annum. The VAE produced at the plant will primarily be used for captive consumption at Asian Paints’ paint manufacturing facilities.

The company said the start of commercial production is part of its broader backward integration strategy. By producing an important material internally, Asian Paints is seeking to strengthen its manufacturing ecosystem and support the requirements of its paint production operations.

The Dahej facility forms part of a larger manufacturing plan announced by the company for the Gujarat site. Asian Paints had earlier outlined plans to establish manufacturing facilities for VAE and Vinyl Acetate Monomer (VAM), along with an ethylene storage and handling facility.

While commercial production of VAE has now commenced, construction of the VAM manufacturing facility and the associated ethylene storage and handling infrastructure is still underway. The company said it will provide further updates as material developments take place.

The development comes as Asian Paints continues to expand its manufacturing capabilities across its coatings portfolio. Its industrial coatings business maintained mid-teen growth during the June quarter, while the decorative paints business also recorded volume growth.

Asian Paints reported revenue of ₹10,542 crore for the quarter, up 18% from ₹8,938.6 crore in the corresponding period a year earlier. EBITDA stood at ₹2,169 crore, an increase of 33.5% year-on-year. The company’s EBITDA margin improved to 20.6% from 18.2% a year earlier.

The company recorded 9% volume growth in its decorative business during the quarter, while value growth stood at 16.6% year-on-year.

The new VAE production capacity is expected to support Asian Paints’ captive requirements as the company continues to build greater integration across its manufacturing operations. The Dahej site is also expected to remain an important part of the company’s plans for VAM and related chemical infrastructure.

For Asian Paints, the commissioning of the VAE plant represents not just an addition to production capacity but another step towards creating a more integrated manufacturing base in India.