Asian Paints has 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 crores ($250 million) over a period of three years.

This is subject to entering into definitive agreements including technology license agreement for manufacturing of VAE and VAM and obtaining necessary regulatory and other approvals. The installed capacity of the said manufacturing facility would be 100,000 tons p.a. for VAM and 150,000 tons p.a. for VAE.

VAE is considered to be the emulsion of the future, and the key constituent for manufacturing environment friendly paints. VAE offers better paint properties and can significantly improve paint performance in customer facing attributes.

Manufacturing VAM and VAE in India would provide substantial sustainable cost efficiencies, substituting our dependence on imports and would be used for the company’s internal consumption. This would be a key backward integration project for the Company.

“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,” said Amit Syngle, managing director and CEO of Asian Paints Limited.

“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 setting up of this VAM and VAE manufacturing facility and we feel that this would be a true game changer in the Indian market,” Syngle added.