Asian Paints said that its a wholly-owned subsidiary, Asian Paints (Polymers) (APPPL) has entered into requisite agreements with Gujarat Chemical Port (GCPL) to set up an ethylene storage and handling facility in Dahej, Gujarat.
GCPL, a joint venture promoted by the Government of Gujarat, has been in operation since the year 2000 and is a strategic commercial port in Dahej with an annual turnover of approximately Rs 650 crore. GCPL owns and operates a network of shore-based tank farm installations for the receipt, storage, and handling of bulk chemicals.As a part of the arrangement with GCPL, APPPL will be providing a security deposit of Rs 460 crore to GCPL which will be refunded over a period of 17 18 years. This would be in addition to the cost of setting up the Vinyl Acetate Monomer (VAM) and Vinyl Acetate Ethylene Emulsion (VAE) manufacturing facility as envisaged before.
Ethylene is a key raw material for the manufacture of Vinyl Acetate Monomer (VAM)/ Vinyl Acetate Ethylene Emulsion (VAE).
Earlier, the company said that its a wholly-owned subsidiary, Asian Paints (Polymers) would be setting up a facility for manufacturing Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) at Dahej, Gujarat. The approximate cost of setting up the manufacturing facility would be Rs 2,100 crore.
Asian Paints is India's leading paint company and ranked among the top ten decorative coatings companies in the world. Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home dor, bath fittings and providing related services.
The paint major's consolidated net profit jumped 34.96% to Rs 1,447.72 crore in Q3 FY24 on 5.43% rise in revenue from operations to Rs 9,074.94 crore in Q3 FY24.
Share of Asian Paints rose 0.77% to Rs 2,849.50 on the BSE.
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