UPM plans its first label material factory in India
UPM Adhesive Materials plans to open its first factory in India in early 2028. Located in Gujarat, the factory will extend the company’s operations in the country from distribution into local production.
The factory will feature an acrylic-based coating line for self-adhesive label materials. The investment continues UPM’s expansion in India, following its announcement in March 2026 of a new label material slitting and distribution terminal near New Delhi.
Together with terminals near Mumbai and New Delhi, the new factory is intended to help UPM provide faster and more reliable deliveries to customers across the country.
Local production to meet growing demand
According to UPM, India’s economic growth is driven by urbanisation, digitalisation, 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 company also sees India’s cost-competitive raw material supplier network and skilled workforce as advantages for its expansion.
“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.
