Paints maker Asian Paints entered into a agreement with the Gujarat government on February 20 to set up a manufacturing facility in Dahej. The pact was signed through its newly incorporated, wholly owned subsidiary, Asian Paints (Polymers).
Asian Paints subsidiary will set up the facility for Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) at Dahej, Gujarat. "The company will make necessary disclosures on any material developments in this regard from time to time," the company said in a regulatory filing.
Asian Paints had last month incorporated Asian Paints (Polymers) with a share capital of Rs 100 crore. In 2022, the company's board of directors approved the setting up of a manufacturing facility for VAE and VAM in India. For this, the company had in October announced that it would invest Rs 2,100 crore over a period of three years.
The installed capacity of the unit would be 100,000 tonnes per annum for VAM and 150,000 tonnes per annum for VAE. VAM is a key input for manufacturing VAE.
According to Asian Paints, 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.
At 1:09pm, shares of Asian Paints traded 0.63 percent lower at Rs 2,809.55 apiece on the BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
