Asian Paints (Polymers) Private Limited (APPPL), a wholly-owned subsidiary of Asian Paints Ltd, had announced the setting up of a facility for manufacturing Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) at Dahej, Gujarat. The approximate cost of setting up the manufacturing facility would be Rs. 2,100 crores.

APPPL has entered into requisite agreements with Gujarat Chemical Port Limited (GCPL) to set up an Ethylene storage and handling facility in Dahej, Gujarat. Ethylene is a key raw material for the manufacture of VAM/VAE.

As a part of the arrangement with GCPL, APPPL will be providing a security deposit of Rs. 460 crores to GCPL which will be refunded over a period of 17 - 18 years. This would be in addition to the cost of setting up the VAM and VAE manufacturing facility as envisaged before.

GCPL, a joint venture promoted by the Government of Gujarat, has been in operation since the year 2000 and is a strategic commercial port in Dahej with an annual turnover of approximately Rs. 650 crores.

GCPL owns and operates a network of shore-based tank farm installations for the receipt, storage, and handling of bulk chemicals.