Aditya Birla Real Estate's Strategic Shift: ABREL Sells Pulp and Paper Business to ITC for Rs 3,498 Crore

Aditya Birla Real Estate Ltd is selling its pulp and paper business, Century Pulp and Paper, to ITC for Rs 3,498 crore. This strategic move aims to focus on real estate opportunities. ITC plans to enhance its paper business through this acquisition, leveraging scale, location benefits, and operational synergies.

Aditya Birla Real Estate Ltd (ABREL) has announced the sale of its pulp and paper business, Century Pulp and Paper (CPP), to ITC for a cash consideration of Rs 3,498 crore. The move is part of ABREL's strategy to focus more intensively on its core real estate business.

ITC welcomed the acquisition, emphasizing that the newly acquired assets will significantly enhance its Paperboards and Specialty Papers Business. The corporation aims to leverage the geographical advantage and integrate CPP's operations for improved efficiency, scale, and growth potential in both domestic and international markets.

This significant deal is expected to unlock value for ABREL, allowing increased focus on real estate developments. Meanwhile, ITC sees this acquisition as a strategic extension of its existing capabilities, with plans to drive structural improvement through various interventions aimed at boosting profitability and expanding capacity.

(With inputs from agencies.)