BUYOUT BET TO MITIGATE RISKS

The acquisition of Century Pulp & Paper gives ITC a presence in north India, with in-house expertise in pulp manufacturing

- BY KRISHNA GOPALAN

WITH THE ACQUISITION of Century Pulp & Paper (CPP) from Aditya Birla Real Estate for ₹3,498 crore, ITC Ltd is seeking to expand capacity, secure supply chains, control costs, and improve market positioning as demand for paper increases.

CPP's closer proximity to raw materials would also help ITC capitalise on India's growing paper market while enhancing efficiency and sustainability. R. K. Dalmia, Managing Director, Aditya Birla Real Estate Ltd (ABREL), says: “The divestment is a strategic portfolio choice and unlocks value for the shareholders of ABREL. The company has embarked on a transformational growth phase, and this move will further sharpen its focus on real estate to drive sustained value creation.”

Paper and paperboard imports rose 3.5% during the April-September period of 2024-25. In such a situation, the acquisition could be a strategic move to mitigate external risks related to paper imports and increase overall profitability and market competitiveness.

“We are looking for a new site and see sustainable packaging as a significant opportunity,” Sanjiv Puri, ITC’s Chairman & Managing Director, told