ITC Acquires Aditya Birla's Pulp and Paper Division in Landmark Rs 3,498 Crore Deal

ITC is set to acquire the pulp and paper division of Aditya Birla Real Estate (formerly Century Textiles & Industries) for Rs 3,498 crore, marking the largest acquisition in the Kolkata-based conglomerate's history. The transaction, which is expected to close within six months pending shareholder and regulatory approvals, will increase ITC's capacity by 50% and enhance its presence in the domestic paperboard and specialty paper sector.

This acquisition is part of ITC's broader strategy of growth through acquisitions. Century Pulp and Paper (CPP), established in 1984 in Lalkuan, Nainital, Uttarakhand, boasts a production capacity of 4.8 lakh tonnes and has a strong foothold in North India, complementing ITC’s existing operations in the South. ITC has described CPP as a "one-of-its-kind asset," with the acquisition poised to immediately increase scale without adding additional domestic capacity. It is also expected to be EPS accretive in its first full year of operations.

Currently, ITC has a total capacity of 1 million tonnes across four manufacturing sites—three in the South and one in Bengal. ITC Executive Director B Sumant emphasized, "The acquisition aligns with the company's strategy to drive the next phase of growth in the paperboards and specialty papers business by expanding capacity at a new location, especially as the existing facilities are already operating at full capacity." For ABREL, the divestment allows the company to sharpen its focus on its core real estate business.

News by Rahul Yelligetti.