ITC enters into Business Transfer Agreement with Aditya Birla Real Estate

ITC Ltd. | Cigarettes/Tobacco | FMCG | BSE: 500875 | NSE: ITC

01 Apr 2025 Evaluate

ITC has entered into a Business Transfer Agreement (BTA) with Aditya Birla Real Estate (ABREL) for acquisition of ABREL’s pulp and paper business operated under the name of ‘Century Pulp and Paper’ (CPP), along with the assets, liabilities, contracts, employees etc. (Undertaking), as a going concern on a slump sale basis, subject to the conditions precedent specified in the BTA.

Established in 1984 at Lalkuan (Nainital, Uttarakhand), CPP is a well-established player in the Indian Paper industry with an installed capacity of 4.8 lakh MT per annum. The acquisition is in line with the company’s strategy to drive the next phase of growth in its Paperboards and Specialty Papers Business by expanding capacity at a new location, given the limited scope for expansion at the existing facilities. Lumpsum consideration of up to Rs 3,500 crore on a cash-free debt-free basis, will be payable on Closing, subject to adjustments in accordance with the terms and conditions set out in the BTA. The transaction is expected to be consummated in about 6 months, subject to receipt of statutory approvals and fulfilment of the conditions laid down in the BTA.

ITC has business a interests in cigarettes, hotels, paperboards and specialty papers, packaging, agribusiness, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.