Asian Paints to invest Rs 2,650 crore in setting up new raw material manufacturing facilities

21 Oct 2022 , 08:12 AM

On Thursday, Asian Paints announced investments totalling more than Rs2,650 crore in a greenfield vinyl acetate factory, a white cement joint venture in the UAE, and a nanotechnology start-up.

The expenditures, according to the paint manufacturer, would aid in backward integration.

In order to establish a production facility for vinyl acetate monomer and vinyl acetate ethylene emulsion in India, the company will invest Rs2,100. The factory will be able to produce 150,000 tonnes of VAE annually and 100,000 tonnes of VAM annually.

According to a statement from the firm, VAE is seen as the emulsion of the future and a crucial component in the production of environmentally friendly paints. A vital component in the production of VAE is VAM.

To build a white-cement facility with a Rs550 crore investment, the paint manufacturer will form a 60:40 joint venture with Riddhi Siddhi Crusher & Land Transport (Riddhi Siddhi) and Associated Soap Stone Distributing Company Private Limited (ASD).

In Fujairah, Riddhi Siddhi is the owner of mining rights for premium limestone mines. Leading provider of raw ingredients to the paint sector is ASD.

Asian Paints will be able to further integrate its value chain backward with the aid of White Cement, a crucial raw material used in the production of powder paints and undercoats like putty.

The third investment will go to Harind Chemicals and Pharmaceuticals Private Limited, a player in the nanotechnology industry. Asian Paints and the company’s current shareholders signed a legally binding agreement on Thursday to buy a 51% stake. If certain requirements are met, it will gradually purchase an additional 39% stake from the current shareholders over the next five years.

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