Strengthening its presence in India, UPM Adhesive Materials plans to open its first factory in India in early 2028. Located in the state of Gujarat, the factory will feature an acrylic-based coating line for self-adhesive label materials. The investment continues its expansion in India, following the company’s March 2026 announcement of a new label material slitting and distribution terminal near New Delhi.
India’s economy is growing rapidly, driven by urbanization, digitalization, infrastructure investments and rising household consumption. As the market develops, label converters need more responsive service, shorter lead times and products tailored to local requirements.
The new coating line extends the company’s presence in India from distribution into local production. Combined with terminals near Mumbai and New Delhi, it strengthens UPM’s ability to serve customers across the country with more reliability and speed. India also offers a cost-competitive raw material supplier pool and a skilled workforce, supporting UPM’s 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.
UPM Adhesive Materials‘ new label material distribution terminal in Delhi-NCR will become operational in Q4 of the calendar year 2026. Spanning approximately one acre, the facility is designed to support an initial annual delivery capacity of 30-35 million square meters, Suresh Valecha, senior country manager, South of Asia, UPM Adhesive Materials, had told Packaging South Asia in a recent interview.
