Asian Paints has increased the capital investment for its upcoming manufacturing facility in Dahej to ₹3,250 crore.

On Thursday, March 27, Asian Paints Limited announced that it has approved an additional capital outlay of ₹690 crore for its under-construction manufacturing plant in Dahej, Gujarat.

With this increase, the overall project cost has risen to ₹3,250 crore from the original estimate of ₹2,560 crore, primarily due to higher pre-operative expenses and a rise in overall project costs.

"It is now informed that the Board of Directors at its meeting held today, i.e. 27th March 2025, approved an additional capex cost of Rs 690 crores on account of pre – operative expenses and certain escalations in project costs. The aggregate project cost now stands at Rs 3,250 crores," Asian Paints said in a regulatory filing.

The plant is being developed by Asian Paints (Polymers) Private Limited (APPPL), a fully-owned subsidiary of Asian Paints. It will be equipped to produce vinyl acetate ethylene emulsion (VAE), vinyl acetate monomer (VAM), and will also feature a dedicated ethylene storage and handling facility.

The funding for the project will come from a combination of equity investment by Asian Paints and external debt. The company has stated that it will share additional updates as significant developments occur.

Source: Asian Paints

Date: 18-04-2025