In a major move to strengthen its presence in the paper and packaging segment, ITC Ltd. has acquired Century Pulp and Paper, the pulp and paper business of Aditya Birla Group, for a total consideration of ₹3,498 crore.
The acquisition will significantly expand ITC’s paper production capacity by 60%, taking it from the current 8 lakh metric tonnes (MT) per annum to 12.8 lakh MT. This strategic growth is expected to boost ITC’s efficiency and scale in the paper sector.
Century Pulp and Paper, a well-established business with an installed capacity of 4.8 lakh MT, reported a revenue of ₹3,375 crore in FY2024, with a consistent performance over the last three years. It also posted an EBITDA of ₹500 crore, which adds immediate value to ITC’s bottom line.
The deal is structured on a cash-free, debt-free basis and is expected to be completed within six months, subject to regulatory approvals. This acquisition comes at a time when the paper industry is emerging from a cyclical downturn, offering ITC the opportunity to leverage better margins and operational synergies.
The company is aiming to increase its EBITDA per tonne by 30%–40%, optimize its operations, and improve returns over the medium term. With this strategic investment, ITC is positioning itself for long-term growth and leadership in the paper and paperboard market.
