Whalesbook
ITC's ₹3,498 crore acquisition of Century Pulp and Paper is expected to conclude next week. The deal was previously delayed by issues including lease transfers and approval from the Competition Commission of India.
Deal Faces Final Hurdle
Sources close to the deal confirmed ITC expects the transaction to close soon. The acquisition, first agreed upon on March 31 last year, was held up by procedural steps such as transferring leases from Aditya Birla Real Estate, which currently houses Century Pulp and Paper's operations.
Major Capacity Expansion
Century Pulp and Paper's facilities have an annual production capacity of around 500,000 tonnes. Integrating these operations will lift ITC's paper manufacturing capacity by nearly 50%, bringing its total output to over 1.5 million tonnes annually. This expansion is strategic, as ITC uses about 40% of its production in-house.
Strengthening Market Dominance
As India's largest paper manufacturer, ITC will further strengthen its market dominance with this acquisition. The deal points to ongoing consolidation in the Indian paper industry, as leading companies aim to scale up operations and improve vertical integration. ITC currently operates four paper manufacturing plants in Andhra Pradesh, Telangana, Tamil Nadu, and West Bengal.