Asian Paints Limited has informed that it has incorporated a wholly owned subsidiary for setting up a manufacturing facility for Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) in India.

The wholly owned subsidiary of the company by the name of Asian Paints (Polymers) Private Limited has been incorporated on 11th January, 2023, for the aforesaid purpose with an authorised share capital of Rs. 100 crore.

Recently, Asian Paints had approved the setting up of a manufacturing facility for VAE (Vinyl Acetate Ethylene Emulsion) and VAM (Vinyl Acetate Monomer) in India for a proposed investment of approximately Rs. 2,100 crore over a period of three years. The installed capacity of the said manufacturing facility would be 100,000 tons per annum for VAM and 150,000 tons per annum for VAE.

“Vinyl Acetate Ethylene Emulsion is the Next Gen environment friendly emulsion, based on a unique Vinyl Acetate Monomer technology, which gives a robust competitive edge to Asian Paints in the coatings business. This pioneering technology comes to Asian Paints with a strong sustainable cost advantage and helps us to offer next level innovation for our paint customers. Asian Paints will be one of the first Paint companies to get into backward integration with the setting up of this VAM and VAE manufacturing facility and we feel that this would be a true game changer in the Indian market,” commented Amit Syngle, MD & CEO, Asian Paints Limited.

The setting up of a facility for manufacture of VAM would be based on licensed technology tie up with Kellogg Brown & Root LLC (KBR), USA. KBR is a US $7.3 billion company based in the USA and has presence in 80+ countries. The company has entered into technology and other allied agreements with KBR for manufacturing of VAM in India.