UPM Adhesive Materials to Set Up Landmark Manufacturing Facility in Gujarat
In a significant expansion of its industrial footprint in South Asia, UPM Adhesive Materials has announced plans to establish its maiden manufacturing plant in India. The facility, slated for operations by early 2028, is set to be located in the industrial hub of Gujarat, marking a major milestone for the company’s regional growth strategy.
The new site will feature a state-of-the-art acrylic-based coating line specifically designed to produce self-adhesive label materials. This development signals a shift for the company, moving from a distribution-heavy model to one that integrates full-scale local manufacturing, allowing UPM to cater directly to the burgeoning domestic demand for high-quality labeling solutions.
Expanding the Indian Network
This announcement comes on the heels of UPM’s aggressive expansion across India over the past two years. In early 2025, the company bolstered its presence in Northern and Eastern India by opening a sophisticated slitting and distribution terminal near New Delhi. That facility was designed to provide localized inventory and rapid-response slitting services to regional label converters.
The New Delhi terminal complemented an earlier strategic investment in Mumbai, where UPM launched a similar distribution hub in 2024. Together, these facilities have provided a robust backbone for the company’s logistics, enabling it to bridge the gap between global standards and local market requirements. The upcoming Gujarat plant is intended to serve as the crown jewel of this infrastructure, providing the necessary manufacturing capacity to complement the existing distribution network.
Capitalizing on India’s Growth Trajectory
The decision to choose India for this substantial investment is rooted in the country’s favorable economic climate. Company leadership pointed to several key drivers for this move, including India’s rapid urbanization, extensive infrastructure development, and the widespread adoption of digital technologies.
Furthermore, UPM highlighted the maturity of the Indian supply chain, noting that the country offers a “cost-competitive” base for raw materials. This, combined with access to a highly skilled domestic workforce, makes India an ideal location for the company’s next phase of global expansion.
Harri Janhunen, Vice-President of the UPM Adhesive Materials India and Middle East strategy, emphasized that the investment is a testament to the company’s long-term vision. “This investment reflects our long-term commitment to India and the confidence we have in its growth potential,” Janhunen said. “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.”
A Global Player in Labeling Solutions
UPM Adhesive Materials remains a dominant force in the global packaging sector, offering a wide array of products ranging from specialized graphics solutions and self-adhesive labels to industrial tapes. With a global workforce of approximately 3,300 employees and annual sales nearing €1.7bn ($1.95bn) as of 2025, the company is well-positioned to leverage its new Indian capacity to enhance its competitive edge in the Asia-Pacific market.
By localizing its production, UPM is not only shortening lead times for its Indian client base but is also aligning itself with the “Make in India” initiative, positioning itself as a pivotal partner in the nation’s growing packaging and manufacturing ecosystem.
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