Asian Paints Increases Investment in Dahej Manufacturing Plant to ₹3,250 Crore

Asian Paints has announced an increased investment in its Vinyl Acetate Ethylene (VAE) and Vinyl Acetate Monomer (VAM) manufacturing facility in Dahej, Gujarat. The company’s Board of Directors has approved an additional capital expenditure, raising the total project cost significantly.

Expansion of Manufacturing Facility

Asian Paints (Polymers) Private Limited (APPPL), a wholly-owned subsidiary, is spearheading the development of the VAE and VAM facility. Initially budgeted at ₹2,560 crores, the project cost has now escalated to ₹3,250 crores due to pre-operative expenses and cost escalations. The facility will also include infrastructure for ethylene storage and handling.

Funding and Future Disclosures

The additional investment of ₹690 crores will be financed through a mix of equity funding from the parent company and external debt. Asian Paints has committed to providing regular updates on key developments concerning this expansion.

Asian Paints Share Performance 

As of March 28, 2025, at 10:00 AM, Asian Paints share price was trading at ₹3,236.60 per share, reflecting a surge of 3.06%

Conclusion

With this increased investment, Asian Paints reinforces its commitment to expanding its manufacturing capabilities. The strategic move aims to strengthen its position in the polymer segment and meet growing market demands.

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