ITC’s Strategic Leap: acquisition of Century Pulp & Paper marks new chapter in paperboard leadership

ITC’s Strategic Leap: acquisition of Century Pulp & Paper marks new chapter in paperboard leadership

The Pulp and Paper Times

New Delhi, 2025 — In a landmark move underscoring its aggressive expansion strategy, ITC Limited has acquired Century Pulp & Paper (CPP), marking one of its largest acquisitions to date. This acquisition aligns seamlessly with the company’s ‘ITC Next’ vision, aimed at driving growth through value-accretive investments in high-potential sectors.

Powering Ahead with ITC-PSPD

The acquisition comes under the purview of ITC’s Paperboards & Specialty Papers Division (ITC-PSPD), a business already integrated into the daily lives of millions of Indians. From food packaging to pharmaceuticals and educational stationery, ITC-PSPD’s presence is ubiquitous. With four advanced factories — including India’s largest integrated pulp and paper mill at Bhadrachalam — the division produces one million tons of paper and paperboard annually.

ITC-PSPD is also a sustainability pioneer. Its afforestation initiative has greened over a million acres, planted 1.4 billion saplings, and created 240 million person-days of rural employment. Over 50% of its energy requirements are met through renewable sources, underscoring its commitment to green growth.

Rising Demand in a Growing Market

India is one of the world’s largest paper producers, yet its per capita consumption remains significantly below global averages — just 16 kg compared to the global average of 57 kg and the U.S.'s 197 kg. With growing demand for sustainable packaging across FMCG, QSR, e-commerce, pharmaceuticals, and education, ITC sees a vast opportunity to scale its operations.

“The CPP acquisition will add significant scale & economies, provide locational advantage given that our existing facilities are saturated, derisk operations & will be faster to market than a greenfield option. It will strengthen market standing & engender new opportunities in India & global markets,” said Sumant Bhargavan, Executive Director, ITC Ltd.

Growth Catalyst for the Next Orbit

The CPP acquisition is expected to be earnings per share (EPS) accretive in its first full year, reflecting its potential to enhance ITC’s profitability and market reach.

Rajesh Ponnuru, Chief Executive of ITC-PSPD, remarked, “We are an established market leader offering world-class products backed by most advanced technology & responsible sourcing. Our next orbit of growth will be fuelled by this acquisition. Our multi-location capacity expansion will enhance our ability to serve customers more effectively.”

Looking Ahead

As ITC bolsters its presence in the paper and packaging segment, the CPP acquisition reinforces its broader strategy of creating long-term shareholder value through sustainable and technology-driven expansion. With increased capacity, import substitution potential, and improved supply chain dynamics, ITC-PSPD is set to be a major growth engine for the company in the years ahead.
 

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