ITC Limited has received regulatory clearance to acquire the paper and pulp manufacturing business of Aditya Birla Real Estate Limited (ABREL), marking a significant consolidation move in India’s paper industry. The Competition Commission of India (CCI) has approved the transaction, under which ITC will acquire Century Pulp & Paper, located in Lalkuan, Uttarakhand, as a going concern.
The acquisition will be executed through a slump sale on a cash-free and debt-free basis, with a transaction value of approximately ₹3,498 crore, equivalent to around USD 420 million. As part of the deal, ITC will take over the entire operating business, including manufacturing assets, workforce, contracts, licenses, and associated liabilities, ensuring continuity of operations at the facility.
Established in 1984, Century Pulp & Paper is an integrated pulp and paper manufacturing unit with an installed capacity of around 480,000 tonnes per annum. The mill produces a wide range of products including writing and printing paper, tissue paper, board, and pulp, catering to both domestic and export markets.
The acquisition significantly strengthens ITC’s paperboards and specialty papers business by adding scale, capacity, and product breadth. It also expands ITC’s geographic manufacturing footprint and is expected to generate operational synergies across sourcing, production, and downstream packaging applications.
For ITC, the transaction aligns with its long-term strategy of reinforcing its presence in value-added paper and packaging segments, while supporting growth in sustainable paper solutions. The addition of the Lalkuan facility is expected to complement ITC’s existing manufacturing operations and enhance its ability to serve evolving market demand.
For Aditya Birla Real Estate, the divestment represents a strategic move to sharpen focus on its core real estate business. The company has stated that the sale will help unlock shareholder value and enable more efficient allocation of capital.
Following the CCI approval, the transaction is expected to be completed subject to customary closing conditions.
