ABREL Sells Century Pulp and Paper Business to ITC for ₹3498 Crore
Aditya Birla Real Estate Ltd (ABREL) has announced the sale of its pulp and paper business, Century Pulp and Paper, to ITC for Rs 3498 crore. This strategic move aligns with ABREL's focus on optimizing its asset portfolio and enhancing shareholder value.
AbrelItcCentury Pulp And PaperPulp And Paper IndustryBusiness AcquisitionReal Estate NewsMar 31, 2025
The transaction, which is expected to close by the end of the current fiscal year, is a testament to ABREL's commitment to optimizing its asset portfolio. The proceeds from this sale will be utilized to strengthen ABREL's financial position and invest in new opportunities that align with the company's long-term vision.
Century Pulp and Paper, a subsidiary of ABREL, has been a key player in the Indian pulp and paper industry. The company has a strong presence in both domestic and international markets, with a reputation for producing high-quality paper and pulp products. The sale of this business to ITC, a leading player in the fast-moving consumer goods (FMCG) sector, is expected to create synergies and drive growth for both entities.
ITC, known for its diversified portfolio ranging from cigarettes and FMCG to hotels and information, communication, and technology (ICT) services, has expressed its enthusiasm about the acquisition. The company aims to leverage the strong brand equity and market presence of Century Pulp and Paper to enhance its paper and packaging business.
This acquisition is aligned with ITC's strategy to expand its presence in the paper and packaging segment, which has seen significant growth in recent years. The integration of Century Pulp and Paper's assets and capabilities is expected to bolster ITC's market position and contribute to its overall growth and profitability.
For ABREL, the sale of Century Pulp and Paper represents a strategic shift towards focusing on core real estate and other high-growth sectors. The company has been actively divesting non-core assets to streamline its business and improve operational efficiency. This move is expected to enhance shareholder value and provide the company with the financial resources needed to pursue new opportunities.
The transaction is subject to customary regulatory approvals and other closing conditions. Both ABREL and ITC have expressed confidence in the completion of the deal and the potential benefits it will bring to all stakeholders involved.
In a statement, ABREL's CEO highlighted the importance of this transaction in the context of the company's strategic vision. 'This sale of Century Pulp and Paper to ITC is a significant milestone in our journey to optimize our asset portfolio and focus on core growth areas. We are confident that this partnership will create long-term value for our shareholders and stakeholders,' said the CEO.
ITC's CEO also expressed optimism about the acquisition, stating, 'The integration of Century Pulp and Paper will strengthen our paper and packaging business and contribute to our growth objectives. We are excited about the opportunities this partnership will bring and the value it will create for our customers and stakeholders.'
The pulp and paper industry in India has been witnessing steady growth, driven by increasing demand from various sectors such as packaging, stationery, and hygiene. The acquisition of Century Pulp and Paper by ITC is expected to further boost the growth of the paper and packaging segment and strengthen the industry's competitive landscape.
As the transaction progresses, both companies are committed to ensuring a smooth transition and maximizing the value of this strategic partnership. The sale of Century Pulp and Paper to ITC is a clear indication of the dynamic and evolving nature of the Indian business landscape, where strategic decisions play a crucial role in driving growth and sustainability.
Frequently Asked Questions
What is the value of the transaction between ABREL and ITC?
The value of the transaction where ABREL sold its pulp and paper business, Century Pulp and Paper, to ITC is Rs 3498 crore.
What is the main reason for ABREL selling Century Pulp and Paper?
ABREL is selling Century Pulp and Paper as part of its strategy to optimize its asset portfolio and focus on core growth areas, such as real estate.
How does this acquisition benefit ITC?
This acquisition benefits ITC by strengthening its paper and packaging business and expanding its market presence in the pulp and paper industry.
What sectors is ITC known for?
ITC is known for its diversified portfolio, which includes cigarettes, FMCG, hotels, and information, communication, and technology (ICT) services.
What is the expected impact of this transaction on the pulp and paper industry in India?
The transaction is expected to boost the growth of the paper and packaging segment and strengthen the competitive landscape of the pulp and paper industry in India.
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