Kolkata: Indian conglomerate ITC announced on Monday its decision to acquire the pulp and paper business of Aditya Birla Real Estate for a deal valued at up to 35 billion rupees ($409.7 million). This strategic acquisition is expected to significantly enhance ITC’s paperboards and specialty papers division.
The acquisition will add a substantial 480,000 metric tonnes per year to ITC’s existing production capacity, fortifying its position in the paperboards and specialty papers sector. This expansion comes at a time when ITC’s paperboards, paper, and packaging segment is grappling with challenges, including competition from low-priced Chinese and Indonesian supplies in global markets, sluggish domestic demand, and the unprecedented rise in wood prices.
B Sumant, ITC’s Executive Director, highlighted the strategic benefits of this acquisition, stating, “The acquisition will strengthen the market standing of ITC’s paperboards and specialty papers business and create new opportunities in both domestic and international markets.”
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ITC, already producing over 1 million metric tonnes of paperboards annually, expects to close the transaction in approximately six months, pending regulatory approvals, including clearance from the Competition Commission of India and the transfer of land leases.
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This move aligns with ITC’s efforts to reinforce its position in a competitive industry while navigating the various external challenges affecting the paper and packaging sectors.
