Asian Paints Starts VAE Production at Gujarat Plant
Asian Paints has commenced commercial VAE production at its Dahej facility in Gujarat, strengthening backward integration and improving control over key raw materials for its paint manufacturing operations.
- Commercial production began on September 17, 2026.
- The Dahej plant has an annual VAE capacity of 1.5 lakh tonnes.
- VAM and ethylene facilities at the site are still under construction.
Asian Paints Ltd has commenced commercial production of Vinyl Acetate Ethylene (VAE) at its manufacturing facility in Dahej, Gujarat. Production started on September 17, 2026, from a newly established unit with an installed capacity of 1,50,000 tonnes per annum.
The company plans to use most of the VAE manufactured at the facility for captive consumption at its paint manufacturing plants. The development is part of Asian Paints’ wider backward integration strategy, aimed at strengthening its control over important raw materials and building a more integrated manufacturing network.
VAE is an important input used in coatings and paint-related applications. Bringing its production in-house could provide Asian Paints with greater control over the availability and supply of this material while supporting its broader manufacturing requirements.
The Dahej site is being developed as a larger integrated manufacturing hub. Alongside the VAE facility, Asian Paints is also working on a Vinyl Acetate Monomer (VAM) manufacturing unit and infrastructure for ethylene storage and handling.
However, these additional facilities have not yet been completed. Construction and development activities for the VAM and ethylene-related infrastructure are continuing.
Asian Paints has stated that the newly produced VAE will primarily be consumed internally across its paint manufacturing facilities. The company has also indicated that it will provide further information regarding the Dahej project if there are material developments.
The project forms part of the company’s efforts to strengthen its manufacturing capabilities for critical materials and improve supply security for its operations.
The commencement of VAE production gives Asian Paints greater internal manufacturing capacity for a material used in its operations. Once the remaining facilities at Dahej are completed, the overall project could provide the company with a more integrated raw-material ecosystem.
Asian Paints shares closed at ₹2,454 on the BSE on September 17, 2026, after rising ₹35, or 1.45%, during the trading session.
The company’s operating performance has also remained in focus. During the June quarter, the company reported revenue of ₹10,542 crore, representing an 18% year-on-year increase. EBITDA rose to ₹2,169 crore from ₹1,625 crore in the same quarter of the previous year.
The decorative paints business reported 9% volume growth, while value growth reached 16.6% year-on-year. Asian Paints’ Industrial Coatings business also continued to report growth in the mid-teen range.
The immediate focus at the Dahej site will be on stabilising VAE production and continuing construction of the VAM manufacturing facility and ethylene storage and handling infrastructure.
Completion of these additional facilities would further expand Asian Paints’ ability to manufacture and manage key inputs within its own supply chain. The company is expected to communicate further updates as significant milestones are reached.
For the paint industry, the Dahej development represents another step toward greater manufacturing integration. For Asian Paints, the project is intended to support raw-material security, operational efficiency and longer-term manufacturing requirements.
Also Read: Noida Expressway to Get 1,200 Solar Streetlights
Also Read: NGT Questions GDA Over Colony Built on Ghaziabad Park Land
