ITC gets CCI nod for Rs3,498-cr acquisition of Aditya Birla Group’s paper and pulp manufacturing business

Competition Commission of India (CCI) has approved the acquisition of the paper and pulp manufacturing business of Aditya Birla Real Estate Limited, formerly known as Century Paper and Pulp, by diversified group ITC Limited in a Rs3,498-crore deal.

Century Pulp and Paper (CPP), one of the pioneers in the paper industry, was established in 1984 and was rebranded under Aditya Birla Real Estate Limited (ABREL), even as it continued to operate the pulp and paper business. 

Under the proposed transaction, ITC will acquire ABREL’s pulp and paper business as a going concern through a business transfer agreement. ABREL’s board has already cleared the deal and the CCI nod now clears the path for execution of the deal.

CPP, with its integrated manufacturing facility at Lalkuan in Uttarakhand, is engaged in the manufacture of paper, paper board, tissue and pulp products, with a finished product capacity of about 4.81 lakh tonnes per annum. The company also employs over 6,000 people.

ITC Limited, a diversified group, has already a presence in the paper, paperboards and packaging business, besides its interests in fast-moving consumer goods, agri-business, and information technology, among others.

Aditya Birla Real Estate Limited was established after the winding down of the Century Mills in Mumbai, and includes real estate and pulp and paper manufacturing. The paper business engaged in the manufacture, distribution and sale of paper and paperboard in India, including uncoated writing and printing paper (creamwove, maplitho and copier), kraft paper, virgin multi-layer board, tissue paper, cup stock, stiffener paper, etc.

The offloading of the paper and pulp business marks the complete shift of focus of Aditya Birla Real Estate Limited (ABREL) to real estate under the Birla Estates brand.