"Our Indian operations are beginning to perform well, acquiring good market share last year, and significantly increasing its hold on the Indian market," Printcare chairman Merrill J Fernando told shareholders in the annual report.
"We expanded capacity there by installing a new machine to cater to the anticipated growth in demand over the next few years.
"Our plans for next year include the building of a new factory, and the land for this purpose has already been acquired."
Fernando said the firm's tea bag and envelope making business had also seen strong export growth with new overseas customers being found.
"However local sales have been weaker because of pricing pressures," he said. "Bearing in mind that this area could become saturated with excess capacity in the near future, we have looked towards diversifying our product range.
"Last year we invested in new technology to enable us to move in this direction and we are hopeful that our plans to generate growth from innovative new products will be realised in the next few years."
In the year ended March 2013, Printcare's revenues had risen from 3.2 billion rupees to 3.8 billion rupees. Profits rose to 264 million rupees to 235 million rupees.