ITC Limited has completed its acquisition of Century Pulp & Paper (CPP) from Aditya Birla Real Estate Limited (ABREL), strengthening its Paperboards & Specialty Papers Business and creating India's largest integrated paper and paperboard company.

The transaction, valued at INR 3,498 crore (approximately USD 420 million), was completed following regulatory approvals and the fulfillment of customary closing conditions. The acquisition transfers Century Pulp & Paper to ITC as a going concern on a cash-free and debt-free basis, including its manufacturing assets, employees, contracts, licenses and associated business operations.

Located in Lalkuan, Uttarakhand, Century Pulp & Paper is one of India's leading integrated pulp and paper manufacturers. Established in 1984, the mill has an installed production capacity of approximately 480,000 tonnes per year, manufacturing a diversified portfolio that includes writing and printing papers, paperboard, tissue paper, rayon-grade pulp and paper-grade pulp for domestic and international markets.

Century Pulp & Paper's tissue business comprises approximately 200 tonnes per day (around 72,000 tonnes annually) of prime-grade tissue production capacity following the commissioning of its second Valmet tissue machine in 2021.

With the integration of CPP, ITC's total paper and paperboard manufacturing capacity increases by more than 50%, reaching approximately 1.5 million tonnes annually, making the company India's largest integrated paper and paperboard producer.

The acquisition represents one of the largest transactions in India's paper industry in recent years and aligns with ITC's long-term strategy to expand its Paperboards & Specialty Papers Business through capacity growth, geographic diversification and enhanced operational efficiency.

Century Pulp & Paper provides ITC with its first major paper manufacturing presence in northern India, complementing the company's existing manufacturing footprint in southern India. The acquisition is expected to improve logistics, strengthen customer proximity, increase manufacturing flexibility and create operational synergies across sourcing, production and market reach.

ITC has also highlighted the strategic benefits of expanding capacity through acquisition rather than developing a new greenfield facility. According to the company, the transaction provides immediate scale, strengthens market positioning, diversifies manufacturing locations and supports future growth in both domestic and international markets. The company expects the acquisition to be earnings accretive during the first full year of operations.

India remains one of the world's fastest-growing paper markets, driven by rising demand from packaging, FMCG, pharmaceuticals, education, food service and e-commerce sectors. Although India's annual per-capita paper consumption remains significantly below the global average, industry demand continues to grow steadily, providing long-term opportunities for capacity expansion.

While the acquisition includes Century Pulp & Paper's tissue paper business, the strategic rationale is centered on expanding ITC's integrated paper, paperboard and pulp platform. Tissue production represents a smaller part of the acquired portfolio compared with the mill's core writing and printing paper, paperboard and pulp operations.

For Aditya Birla Real Estate, the divestment supports its strategy to sharpen focus on its core real estate business while unlocking value from its paper manufacturing assets.