CCI Approves ITC’s Acquisition of Aditya Birla Real Estate’s Paper & Pulp Business
The Competition Commission of India (CCI) has approved ITC Limited’s acquisition of the paper and pulp manufacturing business of Aditya Birla Real Estate Limited (ABREL). This approval marks a notable development in India’s paper, packaging, and allied industries. The transaction involves the transfer of ABREL’s paper and pulp business to ITC as a going concern, executed under a Business Transfer Agreement between the two listed entities.
According to the announcement, the “Target Business” comprises the manufacturing, distribution, and sale of a wide range of paper and paperboard products in India. These include uncoated writing and printing paper such as creamwove, maplitho, and copier grades, as well as kraft paper, virgin multilayer boards, tissue paper, cup stock, stiffener paper, and other specialty grades.
The business forms a significant part of ABREL’s diversified portfolio, which spans real estate and pulp and paper manufacturing and is housed within the broader Aditya Birla Group. ITC Limited, one of India’s largest conglomerates, operates across multiple sectors, including fast-moving consumer goods, paperboards and packaging, agri-business, and information technology.
ITC’s paperboards and specialty papers division is a key contributor to its integrated value chain, supplying high-quality materials for packaging, printing, and industrial applications. The acquisition of ABREL’s paper and pulp business is expected to further strengthen ITC’s position in the domestic paper and packaging market, enabling it to expand capacity, diversify product offerings, and enhance supply chain efficiencies.
The CCI’s approval indicates that the transaction does not raise competition concerns under the Competition Act, 2002. Given the fragmented nature of India’s paper and paperboard industry, with numerous regional manufacturers and a mix of integrated and non-integrated players, the acquisition is unlikely to adversely affect market competition. Instead, it may contribute to improved scale, technology adoption, and product innovation within the sector.
This move is also expected to bring about significant benefits for both companies and the industry at large. For ITC, the acquisition will provide access to a broader range of raw materials and manufacturing capabilities, thereby enhancing its ability to meet the growing demand for high-quality paper and paperboard products. For ABREL, the transaction allows the company to focus on its core real estate business while ensuring the continued growth and development of its paper and pulp operations under ITC’s stewardship.
In conclusion, the CCI’s approval of this acquisition is a positive step for the Indian paper and packaging industry. It is expected to drive further consolidation and innovation, ultimately benefiting consumers and stakeholders alike.
