Asian Paints has commenced commercial production of Vinyl Acetate Ethylene (VAE) at its manufacturing facility in Dahej, Gujarat. The facility has an installed production capacity of 1,50,000 tonnes per annum and is part of the company's ongoing backward integration initiatives.
The company disclosed the development through a regulatory filing dated September 17, 2026, under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements.
VAE Facility Has 1.5 Lakh Tonne Annual Capacity
The newly operational VAE manufacturing facility at Dahej has an installed capacity of 1,50,000 tonnes per annum.
Asian Paints said the VAE produced at the facility will be primarily used for captive consumption at its paint manufacturing facilities. This will support the company's efforts to strengthen its internal supply of a key input used in paint manufacturing.
Part of Asian Paints' Backward Integration Strategy
The commencement of VAE production marks a milestone in Asian Paints' backward integration programme. The company has been developing facilities at Dahej for VAE, Vinyl Acetate Monomer (VAM), and ethylene storage and handling.
According to Asian Paints' latest filing, construction of the VAM manufacturing and ethylene storage and handling facilities is still in progress.
The company's FY2025-26 annual report had outlined a planned integrated VAM-VAE manufacturing ecosystem at Dahej, including 1,50,000 MT annual VAE capacity and 1,00,000 MT annual VAM capacity.
Focus on Captive Raw Material Supply
The VAE facility is intended primarily for captive consumption rather than external sales. By producing VAE internally, Asian Paints is expanding its manufacturing capabilities for an important raw material used across its paint operations.
The company has also stated that the Dahej project is part of its broader effort to build a more integrated and self-reliant manufacturing ecosystem.
VAM and Ethylene Facilities Under Construction
While VAE production has now started, the larger Dahej project is still under development. Asian Paints confirmed that construction of the VAM manufacturing facility and ethylene storage and handling infrastructure is continuing.
The company said it will make further disclosures regarding material developments related to these facilities as required.
Key Details
Conclusion
Asian Paints has started commercial production at its 1,50,000-tonne-per-year VAE facility in Dahej, Gujarat. The development strengthens the company's backward integration efforts, while construction of the associated VAM and ethylene facilities continues.
Source: Asian Paints regulatory filing dated September 17, 2026.
