ITC Seeks CCI Approval to Acquire Aditya Birla Real Estate's Pulp & Paper Business for ₹3,498 Crore
ITC Ltd has formally sought approval from the Competition Commission of India (CCI) to acquire the pulp and paper business of Aditya Birla Real Estate Ltd (ABREL) for a significant sum of ₹3,498 crore. The proposed transaction aims to strengthen ITC's position in the paper and pulp industry.
ItcAditya Birla Real EstatePulp And PaperCciAcquisitionReal Estate NewsAug 26, 2025
Established in 1984 at Lalkuan (Nainital, Uttarakhand), the pulp and paper undertaking of ABREL, known as Century Pulp and Paper (CPP), is a well-established player in the Indian paper industry. The facility has an installed capacity of 4.8 lakh metric tonnes per annum, making it a significant player in the market.
According to the statements from ITC and ABREL, the proposed transaction is not expected to raise any competition concerns within the relevant markets. The market is highly competitive, and the transaction will not cause any appreciable adverse effect on competition in the relevant markets, as stated in the CCI notice.
In March, ABREL announced that its board had approved the execution of the business transfer agreement for the divestment of the pulp and paper undertaking located in Lalkuan, Uttarakhand. The divestment will be conducted through a slump sale to ITC Ltd. The transfer of the business will involve a lump-sum cash consideration of ₹3,498 crore, to be paid by ITC to ABREL.
The divestment of the pulp and paper undertaking is seen as a strategic move by ABREL to unlock value and focus on its core business, real estate. This decision is expected to enable the company to pursue growth opportunities in the real estate sector, which remains a key area of focus.
Kolkata-headquartered ITC has expressed confidence in the future of its paperboards and packaging segment. The company expects this segment to continue generating free cash flow. During the fiscal years 2020-2024, the segment generated a free cash flow of ₹4,000 crore, highlighting its financial strength and stability.
Frequently Asked Questions
What is the proposed transaction between ITC and Aditya Birla Real Estate?
The proposed transaction involves ITC Ltd acquiring the pulp and paper business of Aditya Birla Real Estate Ltd (ABREL) for ₹3,498 crore. The transaction is structured as a sale of the target business as a going concern, in accordance with the business transfer agreement.
What is the capacity of the pulp and paper plant in Lalkuan, Uttarakhand?
The pulp and paper plant in Lalkuan, Uttarakhand, has an installed capacity of 4.8 lakh metric tonnes per annum. It is a significant player in the Indian paper industry.
Why is the CCI's approval required for this transaction?
The CCI's approval is required to ensure that the proposed transaction does not raise any competition concerns and does not cause any appreciable adverse effect on competition in the relevant markets.
What is the strategic rationale behind ABREL's decision to divest the pulp and paper business?
ABREL's decision to divest the pulp and paper business is a strategic move to unlock value and focus on its core business, real estate. This will enable the company to pursue growth opportunities in the real estate sector.
How has ITC's paperboards and packaging segment performed financially?
ITC's paperboards and packaging segment has performed well, generating a free cash flow of ₹4,000 crore during the fiscal years 2020-2024. The company expects this segment to continue generating free cash flow in the future.
Related News Articles
Market Outlook: Global Cues to Weigh on Sentiment, Bajaj Housing Finance IPO, and More
Bajaj Housing Finance is engaged in individual home loans, loan against property, lease rental discounting, and developer finance. Nifty snapped three-week winning streak led by global volatility.
Chennai's GST Road Suburbs Witness Unprecedented Development Boom
The Chennai suburbs along the Grand Southern Trunk (GST) Road are witnessing rapid development, including increased employment opportunities, enhanced road and rail connectivity, and a real-estate boom.
A Peek into Lee Min Ho's Lavish Seoul Home: The Mansion Worth Rs 37 Crore
Step into the luxurious world of K-drama superstar Lee Min Ho, whose stunning Seoul residence is a perfect blend of modernity and elegance. Here’s a detailed look at his lavish abode that you won't want to miss.
Mumbai Real Estate Market Booms with Over 9,200 Property Registrations in 27 Days
In a significant boost to the Mumbai real estate sector, over 9,200 properties were registered in just 27 days, according to the latest official data. This surge in property registrations has also generated substantial revenue, totaling ₹760 crore in Janu
WeWork's India Franchisee Plans Mumbai IPO
The IPO will involve the sale of 33 million equity shares by Indian real estate firm Embassy Group and 10.3 million equity shares by 1 Ariel Way, marking a significant step in the growth of WeWork's presence in India.
Law Change and TDR Concession: How Maharashtra Aims to Boost Mumbai Airport Funnel Zone Redevelopment
In a significant move, the Maharashtra government has introduced a law change and TDR (Transfer of Development Rights) concession to accelerate redevelopment in Mumbai’s airport funnel zone. Real estate stakeholders are optimistic about the potential bene