Asian Paints increases capex to ₹3,250 Crore for Dahej plant

28 Mar 2025 , 12:15 AM

Asian Paints Limited informed that it has approved an additional capital expenditure of ₹690 Crore for its expected manufacturing facility in Dahej, Gujarat.

With the additional expenditure, the total project cost increases to ₹3,250 Crore, higher than initially estimated ₹2,560 Crore. The company has attributed this increase to pre-operative expenses and project cost increases.

The company informed that the board of directors approved an additional capex at its meeting held on March 27, 2025.

Asian Paints (Polymers) Private Limited (APPPL), a wholly-owned subsidiary is developing a facility that will manufacture vinyl acetate ethylene emulsion (VAE), vinyl acetate monomer (VAM). This also includes an ethylene storage and handling unit.

The company stated that the project will be funded via a mix of equity infusion by Asian Paints and external debt financing. The company said that it will keep providing further updates on any material developments.

The paints business announced that its net profit for the quarter ended December 2024 slipped as much as 23.30% on a year-on-year basis to ₹1,110.48 Crore. In the previous corresponding quarter, the company reported a net profit of ₹1,447.72 Crore.

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