Asian Paints Limited has approved an additional capital expenditure of ₹690 crore for its upcoming manufacturing facility in Dahej, Gujarat. With this increase, the total project cost has risen from ₹2,560 crore to ₹3,250 crore. The company attributed this escalation to pre-operative expenses and rising project costs.
Board Approval for Increased Capex
The Board of Directors reviewed the project and approved the additional investment during a meeting on March 27, 2025. “The board of directors approved an additional capex of ₹690 crore due to pre-operative expenses and project cost escalations. The total project cost now stands at ₹3,250 crore,” the company stated.
Facility to Strengthen Polymer Production
The new facility, being developed by Asian Paints (polymers) Private Limited (APPPL), a wholly-owned subsidiary, will manufacture vinyl acetate ethylene emulsion (VAE) and vinyl acetate monomer (VAM). Additionally, it will include an ethylene storage and handling unit to support production efficiency.
As reported by cnbctv18.com, with this investment, Asian Paints reinforces its commitment to expanding its manufacturing capabilities while addressing cost fluctuations and operational needs.
