Asian Paints’ 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. Ethylene is a key raw material for the manufacture of VAM/VAE.
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 VAM and VAE manufacturing facility as envisaged before.
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 around Rs 650 crore. GCPL owns and operates a network of shore-based tank farm installations for the receipt, storage, and handling of bulk chemicals.
Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services. The Company's business segments are Paints and Home Improvement.
