Indian paint and glue producer UFlex Group has signed a deal on the construction of a new production facility in Moscow Region, the region’s governmental press service revealed on Tuesday.
The investment agreement was signed between the governor of the Moscow Region, Andrei Vorobyov, and the managing director of UFlex Group, Ashok Chaturvedi.
UFlex, which is India’s largest multinational packaging company, will invest 3 billion rubles ($37 million) into the venture and create 150 jobs, according to the official report. The project will see the construction of a production line for paint and glue and for food packaging materials in the special economic zone of Stupino Kvadrat south of Moscow.
“We are grateful that our delegation, our investment block, was kindly received by partners in India which made it possible to find new investors,” the governor’s press-service said, adding that the project will bring new technologies to the processing and manufacturing industry of the region.
The plant will be capable of producing 28 thousand tons of paint and glue for packaging annually and is scheduled to be launched in February 2025, the report said.
Trade and economic partnership between Russia and India have been growing in the wake of Western sanctions on Moscow. In 2022, Russia became one of India’s top five trading partners for the first time. Bilateral trade hit a record $39.8 billion for the 2022-23 fiscal year, official statistics show.
Experts say Indian firms have good opportunities to fill the void left by Western companies in a range of industries such as pharmaceuticals, chemical fertilizers, and hi-tech products. Other important areas of Russian-Indian cooperation include transport infrastructure, agriculture and agro-processing as well as manufacturing and trade.