Asian Paints Starts Production at Dahej VAE Facility

Asian Paints has commenced commercial production at its new Vinyl Acetate Ethylene Emulsion (VAE) manufacturing facility in Dahej, Gujarat, strengthening its backward integration capabilities. Key Highlights • The new facility has an installed capacity of 1,50,000 tonnes per annum. • The plant is located at Dahej, Gujarat. • VAE is an important raw material used in the manufacture of paints, coatings, adhesives and other applications. • Commercial production has now commenced, bringing the planned capacity into operation. Why It Matters The new facility strengthens Asian Paints’ backward integration strategy by increasing its in-house manufacturing capabilities for a key input. Greater internal production can potentially provide the company with better control over raw-material availability, supply chain and costs. However, commissioning is only the first step. The key monitorables will be capacity utilisation, production ramp-up and the eventual impact on operating efficiencies and margins.