UPM Adhesive Materials to open its first Indian label plant in 2028
A domestic coating line lets the company respond faster to customers, cutting reliance on imported label stock and shortening lead times for Indian converters.
INDIA – UPM Adhesive Materials has revealed plans to open its first manufacturing site in India in early 2028, building a plant in Gujarat that will contain an acrylic-based coating line for self-adhesive label materials.
The facility will add local manufacturing capacity to the company’s existing distribution operations in the country.
In March, UPM Adhesive Materials increased its operational reach in India with the establishment of a new slitting and distribution terminal near New Delhi.
That facility aimed to enhance services for customers in Northern and Eastern India, equipped with advanced slitting equipment and region-specific inventory to support local label converters.
The move followed the opening of a similar terminal in Mumbai in 2024 and extended UPM’s coverage across the country.
Local Coating Shortens Lead Times for Converters
Establishing a domestic coating line allows the company to respond faster to customer requirements, reducing reliance on imported label stock and shortening supply lead times for Indian converters.
Label material supply has historically depended on imports from Europe and Asia, exposing converters to freight delays, currency fluctuations and inventory planning challenges.
Local production of acrylic-based self-adhesive materials addresses these constraints by placing coating capacity closer to the converters and brand owners who consume it.
Company Cites Raw Materials and Workforce Advantages
The company cited India’s cost-competitive raw material supplier base and skilled workforce as factors supporting its regional plans.
It also outlined India’s rapid economic growth, which it said resulted from digitalisation, infrastructure projects and urbanisation.
Harri Janhunen, vice president for India and Middle East strategy at UPM Adhesive Materials, said the investment reflected the company’s long-term commitment to India and confidence in its growth potential, adding that a local coating line allowed the company to respond faster to customer needs while giving access to India’s strong raw material base and talent pool.
Sales Reach Nearly US$2 Billion in 2025
UPM Adhesive Materials produces self-adhesive products including label materials, graphics solutions and speciality tapes, employing around 3,300 people globally.
The business reported sales of nearly €1.7 billion (US$2 billion) in 2025.
The Indian investment forms part of broader expansion in Asia, where demand for self-adhesive labels continues growing alongside organised retail, packaged goods and pharmaceutical labelling requirements.
For label converters in India, domestic coating capacity could improve access to consistent quality materials and reduce working capital tied up in imported inventory, while supporting faster turnaround for brand owners requiring short-run and versioned label work.
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