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Avery Dennison increases capacity at Pune facility for India consumer market

Monday, November 29, 2010

Press release from the issuing company

Mumbai, India - As brand labeling plays an increasingly important role in South Asian consumer purchasing decisions, Avery Dennison is increasing its commitment to grow the Indian packaging industry. The country's leader in labeling and pressure-sensitive material production, Avery Dennison is once again expanding capacity and production of pressure-sensitive materials for labeling and packaging at its state-of-the-art plant in Pune.

"Our goal is to help make our partners more competitive and profitable, and advance consumer growth in India as a whole," said Mr. Dean A. Scarborough, Avery Dennison chairman, president and CEO. "Through our continued investment in Pune, we can offer world-class support to Indian consumer products companies and their label suppliers to elevate the impact of their brands throughout the region."

This is the third time the company has expanded capacity at Pune since it opened in 2008. Avery Dennison has experienced double-digit annual growth in India since entering the country in 1997, and Indian retail sales are projected to grow by more than 50 percent over the next five years as the country transitions to a more organized retail sector, according to research firm Business Monitor International.

Opened in 2008, the Pune plant produces technically advanced pressure-sensitive materials on a 28-acre site at Ranjangaon Industrial Area in the Western Indian state of Maharashtra. The facility's expansion will include the addition of the widest and fastest adhesives coating line in India as well as new pressure-sensitive roll materials handling and finishing equipment.

Pune is one of three major Avery Dennison manufacturing facilities in India. The other two are located in Gurgaon and Bangalore. The company also maintains a network of strategically located sales and distribution centers in India, which includes facilities in Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata. Including the Pune expansion, the company has invested more than US$50 million in India.

Working closely with its partners and customers, Avery Dennison has been offering packaging and labeling solutions in South Asia for more than 15 years, with a strong presence in India, Bangladesh, Pakistan and Sri Lanka. Avery Dennison now employs about 3,000 employees throughout South Asia.

Avery Dennison has pioneered the worldwide use of pressure-sensitive materials for labeling products, which are widely used on food, beverage, wine and spirits, home and personal care, and pharmaceutical products, and durables. The superiority of labels made from pressure-sensitive materials over glue-applied labels extends from their design flexibility and potential for more distinctive branding to their lower total applied cost.

The company also serves retailers, including apparel retailers, from South Asia through its retail information services business, which designs and manufactures solutions to branding and information management challenges in the form of apparel label, tickets and packaging. Avery Dennison also provides Indian businesses with materials for graphic media, including vehicle and architectural wraps, and reflective materials for highway signage.

In a joint statement, Avery Dennison Materials South Asia's new managing director, Mr. Anil Sharma, joined Avery Dennison India founder Mr. Raj Srinivasan in saying: "Avery Dennison is proud to have been part of the phenomenal growth of the Indian labeling industry over the past decade and is committed to furthering its expansion. We will continue to work with our customers and business partners to ensure that India's manufacturers can easily access world-class labeling solutions that will enhance brand appeal and packaging functionality in both local and international markets."

Mr. Sharma joined Avery Dennison South Asia in August 2010, taking over from Mr. Srinivasan, who is returning to the U.S. as vice president of new product introduction at the Avery Research Center, Pasadena, California.


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