MUMBAI: ITC has inked a business transfer agreement to acquire the pulp and paper division of Aditya Birla Real Estate Ltd (ABREL) for Rs 3,500 crore. The deal, structured as a slump sale on a cash-free, debt-free basis, brings Century Pulp and Paper (CPP) into ITC's fold, bolstering its footprint in the paper and packaging game.

Established in 1984 in Lalkuan, Uttarakhand, CPP boasts an installed capacity of 4.8 lakh metric tonnes per year. With India’s paper demand growing at six to seven per cent annually and per capita consumption at a mere 16 kg (compared to the global average of 57 kg), ITC is betting big on the sector’s headroom for growth.

This acquisition is a strategic masterstroke. ITC’s paperboards and specialty papers division, already a heavyweight with an annual output exceeding 1 million metric tonnes, will gain instant scale and efficiencies. A new production hub means better customer service, proximity to raw materials and, crucially, operational resilience. ITC plans to turbocharge CPP’s profitability with a mix of capacity de-bottlenecking, product upgrades, efficiency drives, supply chain tweaks, and procurement muscle.

The deal is subject to regulatory nods, including clearance from the Competition Commission of India and the ministry of environment, forest and climate Change. It is expected to be wrapped up in about six months.

 ITC executive director B Sumant said: “This move strengthens our market position and unlocks fresh opportunities in both domestic and global markets. Our new asset aligns perfectly with our strategy to drive the next horizon of growth.”

With this bold play, ITC is not just expanding—it’s redefining its game in paper and packaging.