Aditya Birla Group Offloads Pulp & Paper Business to ITC for Rs 3,500 Crore

Aditya Birla Group, a leading conglomerate in India, has announced the sale of its pulp and paper business, Century Pulp and Paper (CPP), to ITC Limited for Rs 3,500 crore. This strategic divestment is aimed at streamlining the group's portfolio and focusing on core areas of strength.

The transaction, which was finalized after extensive negotiations, includes the transfer of all assets and operations of CPP, located in Lalkuan, Uttarakhand. The deal is expected to enhance ITC’s presence in the pulp and paper sector, aligning with its vision to become a leading player in sustainable and value-added paper products.

Century Pulp and Paper is one of the largest integrated paper and pulp manufacturers in India, with a strong market presence and a reputation for quality and innovation. The company has a rich history of over 80 years and has been at the forefront of technological advancements in the paper industry.

For ITC, this acquisition is a significant step towards expanding its portfolio and strengthening its position in the paper and packaging sector. ITC, a diversified conglomerate with a focus on FMCG, hotels, and paperboards, has been proactive in acquiring and integrating strategic assets to bolster its market presence.

The divestment is expected to provide a substantial financial boost to Aditya Birla Group, allowing it to reinvest in core businesses such as textiles, metals, and financial services. The group has been actively engaging in portfolio optimization to enhance shareholder value and focus on high-growth areas.

The transaction is subject to regulatory approvals and is anticipated to be completed within the next six months. Both companies have expressed optimism about the deal, highlighting the synergies and mutual benefits it will bring.

This move underscores the dynamic nature of the Indian business landscape, where strategic alliances and acquisitions play a crucial role in shaping the future of industries. The Aditya Birla Group and ITC are both renowned for their robust business practices and commitment to sustainable growth, and this deal is expected to set new benchmarks in the pulp and paper sector.

The integration of CPP’s operations into ITC’s existing portfolio is expected to create a robust and efficient paper manufacturing unit. This will enable ITC to offer a wider range of products and services, catering to the growing demand in the domestic and international markets.

The Aditya Birla Group, known for its diversified portfolio and global footprint, has a strong presence in various sectors including cement, chemicals, and telecommunications. The group’s commitment to innovation and sustainability has been a key driver of its success over the years.

ITC, on the other hand, is a leader in FMCG and has made significant strides in the paper and packaging industry. The company’s focus on sustainable practices and customer-centric solutions has helped it build a strong brand reputation and a loyal customer base.

The completion of this deal is expected to have a positive impact on both companies’ financial performance and market standing. It also highlights the importance of strategic partnerships in driving growth and innovation in the Indian industrial sector.