Avery Dennison inaugurates new plant in India

Avery Dennison has invested around 250 crore INR (30.8 million USD) in setting up its new manufacturing plant, taking the company’s India investment to 1,000 crores INR (123.5 million USD) and doubling the company’s pressure-sensitive label production capacity.

With this key business milestone, Avery Dennison celebrates 25 years of business operations in India and is looking for the next phase of growth. The company was
largely reliant on imports 25 years ago for its labelstock sales in India.

With the increased foothold in the Indian market, it has now moved to almost 100 percent localized production capability, making it more in sync with the prime minister’s ‘Make in India’ initiative.

Through this new facility, Avery Dennison will be consolidating its manufacturing operations to better serve customer demands while optimizing the improved efficiencies gained from investment in new technology.

Saurabh Agarwal, senior director and general manager, label and packaging materials, South Asia for Avery Dennison, says: ‘We are extremely delighted to inaugurate our world-class manufacturing facility in Greater Noida and with this latest expansion, we are looking for the next big chapter in our growth in India. Our new facility is built on one of the most sought-after land allotted by the Uttar
Pradesh government. By expanding in UP, we will be able to serve the requirements of our customers better and also enhance the company’s production capacity to meet the
growing demand of the Indian market.’

Spread over an area of 12 acres, the new plant will produce advanced pressure‑sensitive materials for the labeling and packaging industry, incorporating best practices learned from Avery Dennison’s global operations. Land for the new
facility has been allotted by the Yamuna Expressway Industrial Development Authority (YEIDA). The company was looking for a location in North India for the new plant which would also have scope for future expansion. Yamuna expressway and YEIDA ticked all the boxes in terms of logistics, access to raw materials and airport facilities.

The plant is equipped with coating and lamination lines, along with high-speed slitters and sheeters. It has a high degree of automation, including the widespread use of robotics.

‘The coating machine is almost human touch free,’ says Agarwal. ‘It is the only coating operation in Asia that is Lead
certified.’

The 12-acre site is equipped with a 500kw solar panel on the roof.

Pankaj Bhardwaj, VP of marketing, Asia Pacific, Avery Dennison, says that per capita consumption of pressure-sensitive labels in India is 0.3m, which is still very low compared to other countries in the wider region. In Thailand and Malaysia, for example, the figure is 3m, in Australia 8m,
Europe 11m and the US 12m per person.

‘That clearly means there’s a lot of room for growth in this industry. The new plant is going to ensure that we serve the market reliably. It will ensure we are able to localize
products that the market may require as it evolves.’ The Indian market will grow in double digits in the next three years, says Bhardwaj.

Bhardwaj adds that around 70 percent of the products Avery Dennison sells in India are from its sustainable portfolio - 70 percent of the paper it buys for India is FSC certified. By 2030, the company plans to source 100 percent of its paper from deforestation-free sources and be
95 percent landfill-free.

The company started its first plant operation in Gurgaon in 1997 with a hot melt coating line. Since then, it has expanded its operations across India in major cities such as Pune, Bangalore, and Kolkata and now in UP.