New Gujarat facility to bring us closer to customers in India

UPM Adhesive Materials is strengthening its presence in India. The recent announcement of the company's first manufacturing facility in Gujarat marks an important milestone in UPM's growth journey. Following the opening of a new terminal near New Delhi earlier this year, the investment expands our presence from distribution into local manufacturing, bringing us closer to customers across India and the surrounding region.

“India is emerging as one of the world's most attractive growth markets for the packaging and labeling industry. Home to nearly one-fifth of the world's population, the country combines strong economic growth, rapid urbanization and rising consumer demand," says Tim Kirchen, Executive Vice President of UPM Adhesive Materials.

"While many mature markets have reached saturation, India's packaging industry continues to grow, creating significant opportunities for the future. This investment positions us to grow alongside our customers and strengthens our presence in a market that will play an increasingly important role in our industry,” he continues.

For Suresh Valecha, Senior Country Manager for South Asia, the investment represents also much more than just a new production facility. "India is a highly dynamic and agile market characterized by fast-paced business and high customer expectations. Being closer to our customers allows us to respond faster, collaborate more closely and develop solutions that truly meet local needs," he says.

As demand for packaged food, pharmaceuticals, personal care products and other consumer goods continues to expand, customers are increasingly looking for reliable partners that can provide both consistent supply and local support. At the same time, growing expectations around innovation, sustainability and technical expertise are reshaping the market.

A market built on collaboration

Growth is only part of the story. What makes India particularly unique is the way businesses collaborate across the value chain.

In many markets, relationships are primarily built with converters and printers. However, in India brand owners often play a much larger role in material selection and purchasing decisions. This creates a need for closer collaboration and a deeper understanding of customer requirements throughout the entire value chain.

"Success is not driven solely by relationships with converters and printers. Direct engagement with brand owners is equally critical," says Valecha.

India's printing industry also remains highly fragmented, making strong partnerships and early collaboration especially important. As customer expectations continue to evolve, businesses are looking for suppliers that can do more than just deliver products. They increasingly value partners that can provide technical expertise, support innovation initiatives and help navigate changing sustainability requirements and future market trends.

Why local presence matters

These changing expectations are one of the key reasons behind UPM's investments in local capabilities.

According to Valecha, a strong local presence is essential for building customer trust, improving supply chain resilience and responding quickly to changing market needs. Local manufacturing reduces dependence on global supply chains while improving product availability, delivery performance and responsiveness. It also enables solutions to be developed specifically for the Indian market rather than adapting products designed for other regions.

"A strong local presence is critical to building customer trust, enhancing supply chain reliability and responding quickly to evolving market needs," Valecha explains.

For customers, this means improved material availability, shorter lead times, greater flexibility and easier access to technical and commercial support. For UPM, it strengthens long-term partnerships and reinforces the company's commitment to the market.

Investing in the future

While the new factory is an important milestone, the investment is about much more than increasing production capacity.

India offers a unique combination of strong domestic demand, engineering expertise, a skilled workforce and access to key raw materials. These strengths create opportunities that extend beyond manufacturing and support UPM’s broader growth ambitions in the region.

Over time, India could play an increasingly important role in areas such as sourcing, innovation, product development and technology. With its talent base, manufacturing capabilities and cost competitiveness, the country has the potential to strengthen both regional operations and UPM's wider global network.

The investment reflects UPM’s confidence in India's long-term potential and its commitment to growing alongside customers in one of the world's most promising markets.

Looking ahead

For Suresh Valecha, one of the most rewarding aspects of the journey has been seeing India's growing strategic importance within UPM.

"What excites me most is the trust UPM has placed in the local team. The company has recognized India's potential and given us the opportunity to help turn that vision into reality," he says.

Looking ahead, he believes India can become an increasingly important contributor to UPM's success through innovation, talent, customer partnerships and manufacturing excellence. In the near future, local production will strengthen UPM's ability to serve neighboring markets, while over the longer term India could evolve into a strategic hub supporting the company's global operations.

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