ITC Set To Acquire Paper Manufacturer Century Pulp For Rs 3,498 Crore

ITC is set to conclude its Rs 3,498 crore acquisition of Century Pulp and Paper next week, bringing closure to a deal that has been in the works for over a year, The Economic Times reported.

The transaction, originally agreed with Aditya Birla Real Estate on March 31 last year, faced delays due to issues related to lease transfers and regulatory approvals, including clearance from the Competition Commission of India (CCI).

With most of the procedural hurdles now addressed, the final stage of the deal hinges on the transfer of leases associated with the pulp and paper unit, after which the acquisition is expected to be formally completed.

The acquisition of Century Pulp and Paper is a strategic move for ITC as it looks to strengthen its presence in the paper and packaging segment. The addition of the unit is expected to significantly expand ITC’s manufacturing capacity, with estimates suggesting a rise of around 50 percent to over 1.5 million tonnes annually.

Century Pulp and Paper, located in Uttarakhand, has an installed capacity of around 4.8 lakh metric tonnes per annum and produces a range of paper products, including writing, printing, and packaging materials.

For ITC, the deal also helps diversify its manufacturing footprint geographically, as its existing paper facilities are largely concentrated in southern India. The acquisition provides a strategic foothold in the northern market while strengthening backward integration for its packaging and FMCG businesses.

On the other hand, the divestment aligns with Aditya Birla Real Estate’s strategy to exit non-core businesses and focus on its core real estate operations.

The completion of the transaction will mark one of ITC’s largest bets in the industrial segment, reinforcing its position as the country’s leading paper manufacturer and underlining its long-term focus on the paperboards and specialty papers business.