ITC is set to acquire the pulp and paper division of Aditya Birla Real Estate (formerly Century Textiles & Industries) for Rs 3,498 crore, marking the largest acquisition in the kolkata-based conglomerate’s history. The deal, expected to close within six months pending shareholder and regulatory approvals, will boost ITC’s capacity by 50 percent and strengthen its position in the domestic paperboard and specialty paper segment.

The latest buyout aligns with the company's strategy of expanding through acquisitions. Century Pulp and Paper (CPP), established in 1984 at Lalkuan, Nainital, Uttarakhand, has a 4.8-lakh-tonne capacity and a strong presence in north India, complementing ITC’s existing manufacturing bases in the southern market. ITC described CPP as a "one-of-its-kind asset," stating that the acquisition would immediately enhance its scale without adding to domestic capacity and would be EPS accretive in its first full year of operations.

ITC’s current capacity stands at one million tonne across four manufacturing sites - three in the South and one in Bengal. Executive Director of ITC B Sumant, stated, “The acquisition aligns with the company’s strategy of driving the next horizon of growth in the paperboards and specialty papers business by expanding capacity at a new location considering that the existing facilities are already saturated.” For ABREL, the divestment will allow the company to sharpen its focus on the real estate business.