The acquisition is reportedly worth ₹3,500 crore, making ITC India’s largest integrated paperboards and paper company.
In recent acquisition news, the one where ITC acquires Century Pulp has made quite a few headlines, as it has acquired it for a massive ₹3,500 crore. This has made ITC India’s largest integrated paperboards and paper company, raising capacity by over 50% to around 1.5 million tonnes.
This acquisition reflects ITC’s strong presence in India’s paper and packaging sector. It has become effective as of August, following the transfer of the business from Aditya Birla Real Estate under a slump sale arrangement. The move also reflects ITC’s continued focus on strengthening its non-cigarette businesses while responding to rising demand for paper-based packaging solutions across industries.
Major acquisition of Century Pulp by ITC.
With the integration of Century Pulp and Paper, ITC’s installed paper production capacity has seen an increase of more than 50%, reaching approximately 1.5 million tonnes annually. The acquired business contributes nearly 4.8 lakh tonnes of annual capacity, significantly expanding ITC’s manufacturing footprint.
The larger production base is expected to improve operational efficiency, strengthen supply capabilities and help the company cater to growing domestic demand for paperboards, specialty papers and value-added packaging products.
A growing demand for sustainable packaging.
India’s packaging industry has witnessed steady growth, driven by expanding e-commerce, fast-moving consumer goods (FMCG), pharmaceuticals and organised retail. This trend has also accelerated demand for recyclable, fibre-based packaging materials as businesses increasingly adopt sustainable alternatives.
By expanding its paper business, ITC is better positioned to serve these evolving market requirements while leveraging its existing expertise in paperboards and specialty papers. The acquisition also broadens the company’s manufacturing network, allowing greater flexibility across production facilities.
Industry observers view the acquisition as more than just a capacity expansion. Bringing Century Pulp and Paper into ITC’s portfolio provides access to additional manufacturing infrastructure, established operations and an experienced workforce, creating opportunities for operational integration and long-term efficiency gains.
The transaction also strengthens ITC’s diversified business model, in which paperboards and packaging continue to play an increasingly important role alongside its FMCG, agriculture, and other businesses. As demand for environmentally responsible packaging grows, scale and manufacturing capability are expected to become key competitive advantages. With expanded production capacity and a wider manufacturing network, the company is better equipped to meet rising demand across multiple sectors while reinforcing its position in India’s evolving paper and packaging industry.
