Asian Paints launches 150,000-Ton VAE emulsion production in Gujarat
The VAE emulsion produced at Dahej will be used primarily within Asian Paints’ own paint manufacturing operations.
INDIA – Asian Paints has started commercial production of vinyl acetate ethylene (VAE) emulsion at its manufacturing facility in Dahej, Gujarat, India.
The new plant has an installed capacity of 150,000 tons per year and represents a major step in the company’s backwards integration strategy.
By producing this key coatings raw material internally, the company aims to reduce its dependence on external suppliers and strengthen control over an important input for water-borne paints and coatings.
VAE is a binder material widely used in paints and coatings, helping improve properties such as pigment binding, opacity, finish, and colour retention.
The VAE facility is part of Asian Paints’ broader backwards integration program, which is designed to bring critical raw materials into its own manufacturing network.
Rather than relying entirely on third-party suppliers, the company is now producing VAE in-house, with potential benefits for supply security, cost efficiency, and manufacturing economics.
Asian Paints previously announced plans for 150,000 tons per year of VAE capacity alongside 100,000 tons per year of vinyl acetate monomer (VAM) capacity.
VAM is a key building block for producing VAE and will support the company’s coatings business.
Construction of the associated VAM manufacturing facility, as well as ethylene storage and handling infrastructure at the Dahej site, is still in progress.
Once completed, these facilities will further deepen Asian Paints’ vertical integration and strengthen its supply chain resilience.
The integrated VAM–VAE ecosystem is expected to help Asian Paints reduce import dependence, improve raw-material availability, and support the development of differentiated and more sustainable paint formulations.
The commissioning of the VAE plant marks a significant milestone in Asian Paints’ efforts to become more self-reliant in critical raw materials.
It also positions the company to gain greater control over the quality, availability, and cost of a core binder used across its coatings portfolio.
The company has indicated that the full project could support improved cost competitiveness and margin benefits as capacity utilization increases and the VAM and ethylene infrastructure become operational.
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