Asian Paints announced a phased investment to set up a manufacturing facility for Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) in India.
A proposed investment of approximately Rs 21 billion is being alloted for the facility over a period of three years.
The setting up of facility for manufacture of VAM would be based on licensed technology tie up with Kellogg Brown & Root LLC (KBR), USA.
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.
Manufacturing VAM and VAE in India would provide substantial sustainable cost efficiencies, substituting company’s dependence on imports and would be used for the its internal consumption. This would be a key backward integration project for the company.
VAM is a key input for manufacturing VAE, which 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 improve paint performance.