CCI approves ITC Limited’s acquisition of Century Pulp and Paper

CCI approves ITC Limited’s acquisition of Century Pulp and Paper

The Pulp and Paper Times | Delhi

The Competition Commission of India has approved the acquisition of paper and pulp manufacturing business of Aditya Birla Real Estate Limited by ITC Limited. 

The Proposed Combination refers to the sale of paper and pulp manufacturing business of Aditya Birla Real Estate Limited (Target Business) to ITC Limited, as a going concern, in accordance with the Business Transfer Agreement executed between the Parties.

Aditya Birla Group has sold Century Pulp and Paper to ITC Limited for Rs. 3498 crore. The sale, carried out through a slump sale route, enables Aditya Birla Real Estate to focus on its real estate endeavors. ITC, a major player in the paper industry, was the preferred buyer due to its significant market presence.

The lump sum consideration is subject to certain adjustments as per the agreement. The transaction is expected to be consummated in about six months, subject to receipt of statutory approvals, including that of the Competition Commission of India (CCI) and fulfilment of the conditions laid down in the BTA.

Commenting on the acquisition in March 2025, Mr. B Sumant, Executive Director, ITC Limited said, “The acquisition will strengthen the market standing of ITC’s Paperboards and Specialty Papers Business and engender new opportunities in the domestic and international markets. The acquisition aligns with the Company’s strategy of driving the next horizon of growth in the Paperboards and Specialty Papers Business by expanding capacity at a new location considering that the existing facilities are already saturated. The strong linkages to afforestation and livelihood creation pursued by both the entities contribute meaningfully to national priorities. We are delighted to welcome CPP into the ITC fold and I am confident that together we will continue to set new benchmarks in customer satisfaction, operational excellence and sustainability.”

ITC Limited has signed a Business Transfer Agreement (BTA) today to acquire the Century Pulp and Paper Undertaking of Aditya Birla Real Estate Limited (‘ABREL’). Established in 1984 at Lalkuan (Nainital, Uttarakhand), CPP is a well-established player in the Indian Paper industry with an installed capacity of 4.8 Lakh MT per annum.
CPP is a one-of-a-kind asset with a strong strategic fit with ITC’s Paperboards & Specialty Papers Business. The acquisition will immediately add significant scale and economies to existing operations with potential for further capacity expansion, provide locational advantage for efficient customer servicing and proximity to key raw material sources, mitigate operational risks through multi-site operations and enhance resilience across industry cycles through portfolio diversification. The Business expects to drive structural improvement in profitability of CPP through several value unlock interventions such as capacity debottlenecking, product quality upgrade, efficiency improvement leveraging TPM/Digital initiatives, supply chain optimisation, overhead rationalisation, and procurement efficiencies.
 

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