Aditya Birla sells Century Pulp and Paper to ITC for Rs 3,498 crore

Aditya Birla Group has sold Century Pulp and Paper to ITC Limited for Rs. 3498 crore, as per details in a stock exchange disclosure on Monday.

The pulp and paper business of the group is housed in the listed Aditya Birla Real Estate. It will be sold via the slump sale route streamlining the focus of the company which has been building its real estate portfolio. The group rebranded the erstwhile Century Textiles Limited to Aditya Birla Real Estate on September 18 reflecting the changed priorities of the company.

ET had first reported on 5th February that ITC was a frontrunner to acquire Century Pulp and Paper which has paper manufacturing capacity of 480,000 tonnes per anum at its Nainital plant.


“The divestment of the pulp and paper undertaking by Aditya Birla Real Estate Limited (ABREL) is a strategic portfolio choice and unlocks value for the shareholders. The company has embarked on a transformational growth phase and this move will further sharpen its focus on real estate to drive sustained value creation,” said RK Dalmia, managing director, ABREL.

“To take it to the next level the company is pleased to have found in ITC, a credible and well established player.”
JM Financial Limited acted as the exclusive financial advisor and AZB and Partners acted as the legal advisor to Aditya Birla Real Estate in this transaction, as per the disclosure.

Market leader ITC has paper production capacity exceeding 1 million tonnes per year across four manufacturing facilities located in Andhra Pradesh, Telangana, Tamil Nadu and West Bengal.

It was competing with West Coast Paper Mills for the purchase of Century Pulp and Paper.

ITC’s flagship paper production unit, earlier known as Bhadrachalam Paper Works and located in Andhra Pradesh, is its largest, accounting for over threefourths of production capacity. The division manages plantations of eucalyptus, casuarina and subabul trees covering an area of more than 1.16 million acres, according to its website. Wood is the main raw material in paper manufacturing.

The paperboards and papers business contributed Rs 5,700 crore to revenue in FY24 as per ITC’s latest available annual report.

For Aditya Birla Group the sale is intended to free up capital for the diversified business group, one of the largest in the country, which has interests in multiple areas such as metals, cement, financial services, retail and telecom. It has also ventured into new areas like paints, jewellery retailing and real estate, incurring significant capex.