In a significant move within India's paper and pulp industry, ITC Limited has announced the acquisition of Century Pulp and Paper, a subsidiary of Aditya Birla Real Estate, for ₹3,500 crore. This acquisition, finalized on April 1, 2025, is expected to bolster ITC's paperboards and specialty papers business by adding 4.8 lakh metric tonnes per annum to its production capacity. The announcement was made in an exchange filing by ITC, highlighting the strategic importance of this deal.
Century Pulp and Paper, based in Lalkuan, Uttarakhand, has established itself as a key player in the paper industry. The acquisition will include not only the manufacturing unit but also all associated assets, liabilities, contracts, and employees, effectively transferring the entire operation to ITC on a slump sale basis.
As per ITC, this acquisition comes at a time when the demand for papers and paperboards in India is growing at an impressive rate of 6% to 7% annually. Industries such as fast-moving consumer goods (FMCG), food services, pharmaceuticals, education, and quick-service restaurants are identified as key growth drivers for this sector. B Sumant, Executive Director of ITC, emphasized the strategic fit of Century Pulp and Paper within ITC’s existing operations, stating, "The acquisition will strengthen the market standing of ITC’s Paperboards and Specialty Papers Business and engender new opportunities in the domestic and international markets."
ITC's move to acquire Century Pulp and Paper is part of a broader strategy to enhance its capacity and market presence in the face of increasing competition, particularly from Chinese and Indonesian suppliers. The company aims to expand its operations at a new location due to the saturation of existing facilities. The transaction is expected to close in approximately six months, pending regulatory approvals from the Competition Commission of India and the Ministry of Environment.
The acquisition is not only a strategic enhancement for ITC but also indicative of the overall growth trajectory of the Indian paper and pulp industry. With a growing economy and rising household wealth, the demand for paper products continues to surge. ITC's stock reacted positively to the announcement, rising by 0.67% to ₹412.5 per share on the National Stock Exchange shortly after the news broke.
In a related development, Adani Energy Solutions has made headlines by fully acquiring Mahan Transmission, further consolidating its position in the energy sector. This acquisition adds to a series of strategic moves by major companies in India, reflecting the dynamic nature of the market.
Additionally, the Ministry of Defence has signed contracts with Hindustan Aeronautics Limited (HAL) for the supply of 156 Light Combat Helicopters (LCH), valued at approximately ₹62,700 crore. This procurement includes 90 helicopters for the Indian Army and 66 for the Indian Air Force, along with training and related equipment.
In the financial year 2025, NCC Limited reported provisional revenues of ₹30,400 crore, a slight increase from ₹30,381 crore the previous year. Its order book as of March 2025 stood at an impressive ₹1,84,000 crore, significantly up from ₹94,129 crore at the beginning of the year. This growth is attributed to additional orders secured in March, amounting to ₹5,773 crore across various divisions, including transportation, building, and water & environment.
Asian Paints is also making strides in the manufacturing sector, announcing plans to invest ₹3,250 crore in establishing a chemical manufacturing facility in Gujarat. This move is part of the company's efforts to enhance its production capacity and meet the growing demand for chemical products.
Meanwhile, the government has taken steps to assist Vodafone Idea by converting its dues into equity, resulting in the acquisition of shares worth ₹36,950 crore at an issue price of ₹10 per share. This move is expected to stabilize the telecom operator's financial standing amid ongoing challenges in the sector.
Moreover, NHPC has commenced commercial operations for Units I, II, and III of the Parbati-II Hydroelectric Project, which has a total capacity of 800 MW. The trial run and commercial operation date for the remaining Unit IV will be announced in due course.
As these developments unfold, they underscore the competitive landscape of various sectors in India, particularly in the context of acquisitions and strategic expansions. The ITC-Century Pulp and Paper deal stands out as a pivotal moment that could reshape the paper industry, enhancing ITC's capabilities while addressing the growing demand for paper products in the country.
