UPM Adhesive Materials is stepping up its India expansion with plans to open its first manufacturing facility in the country in early 2028, marking a significant move into local production.

 

The new factory, to be established in Gujarat, will house an acrylic-based coating line for self-adhesive label materials. The investment builds on the company’s growing footprint in India, following its March 2026 announcement of a new label material slitting and distribution terminal near New Delhi.

 

The move comes as India’s rapidly expanding economy, fuelled by urbanisation, digitalisation, infrastructure development and rising household consumption, creates fresh opportunities for the label industry.

 

With demand evolving, label converters are increasingly looking for faster service, shorter lead times and products tailored to local market requirements. UPM’s new coating facility is aimed at addressing these needs by bringing production closer to customers.

 

The Gujarat factory will take UPM’s India operations beyond distribution and into local manufacturing. Alongside its terminals near Mumbai and New Delhi, the facility will strengthen the company’s supply network and enable faster, more reliable service to customers across the country.

 

India’s competitive raw material supplier base and skilled workforce also make it an attractive manufacturing destination, supporting UPM’s long-term growth ambitions in the region.

 

“This investment reflects our long-term commitment to India and the confidence we have in its growth potential. A local coating line allows us to respond faster to our customers’ needs, while giving us access to India’s strong raw material base and talent pool,” says Harri Janhunen, Vice President, Strategy and India & Middle East, UPM Adhesive Materials.