Asian Paints' Board of Directors at its meeting held on 27 March, 2025 has approved an additional capital expenditure of Rs 690 crore for its upcoming manufacturing facility in Dahej, Gujarat, raising the total project cost to Rs 3,250 crore from the initially estimated Rs 2,560 crore.
The cost increase is attributed to pre-operative expenses and project cost escalations. The facility is being developed by Asian Paints (Polymers) (APPPL), a wholly-owned subsidiary, to manufacture vinyl acetate ethylene emulsion (VAE) and vinyl acetate monomer (VAM), along with an ethylene storage and handling unit.
The project will be financed through a combination of equity infusion by the company and external debt.