ITC Limited has taken a big step in Indian Paper Industry and acquired the Century Pulp & Paper for ₹ 3,498 crore. After this deal, ITC’s paper production capacity will increase by 60% to 12.8 lakh metric tonne per year. This paper division of Aditya Birla Group was annual Revenue ₹ 3,375 crore, while the Revenue of ITC’s Paper Business is ₹ 8,344 crore. This acquisition is an important event for India’s rapidly growing Paper Industry. Know what will be the effect of ITC, Industry and investors! Watch the video completely and explain your opinion in the comment.

A big news related to Aditya Birla Group is coming out. In fact, the real estate branch of this company, Aditya Birla Real Estate Limited (ABREL) has taken a big step and approved the ITC to sell its pulp and paper business for Rs 3,498 crore.

According to the company, the deal has been done to hand over the Century Pulp and Paper (CPP) to the ITC, so that the shareholders can get a higher price and the company can focus on its real estate business.

What did Abrel say

Abrel’s managing director R. Of. Dalmiya said, “We are in the company’s transformation era and this decision will help us further our real estate business.” He further stated that the CPP count has always been in companies with excellent performance and high stability standards. Now by handing it into a strong player like ITC, we want to take it to the next level.

ITC strategy

ITC described this deal as an important part of its growth strategy. The company said that this will give new pace to paperboard and specialty papers business and will get a chance to increase its capacity at a new location.

How was Abrel’s performance?

In the first nine months of FY 2025, the pulp and paper business earned a revenue of Rs 2,382.50 crore, which is 5.34 percent less than the previous year. At the same time, the company’s real estate business has increased rapidly. Its revenue in the first nine months of FY 2025 stood at Rs 777.71 crore, which is five times more than the previous year. At the same time, it increased to Rs 832.21 crore in FY 2024, which is six times the annual basis.

Birla Group expands in real estate

Abrel is working on premium residential projects in major cities like Mumbai, Bengaluru, National Capital Region (NCR) and Pune. Birla Estates, a subsidiary of the group, recently sold houses worth Rs 3,000 crore under the Birla Arika project in Gurugram. The company has also launched its first project in Pune, which is an estimated revenue of Rs 2,700 crore.

What will happen next?

Under this deal, work will continue on the ongoing residential projects of Rs 14,980 crore and upcoming projects worth Rs 48,367 crore. This transaction is expected to be completed in the next six months, which will require CCI (Competition Commission of India) and other statutory approvals.

Who played an important role in the deal?

In this deal, JM Financial Limited played the role of Executive Financial Advisor, while AZB & Partners supported as the legal advisor.

Also read: Rule Change: LPG, UPI and Toll Tax … These 10 rules will change from April 1, your pocket will have a direct impact on your pocket

Adani and aditya birla group: After his deep penetration in the cement sector, now Gautam Adani -led Adani Group and Kumar Mangalam Birla’s Aditya Birla Group are preparing to take a strong entry in the wire and cable segment.

There is already a competition to overtake both in copper and cement sector. Now both groups are going to step into wire and cable segment. In the cement sector, both of them have a tough fight, beating many small and big companies and now there is a turn cable and wire segment, which is likely to grow a lot in the coming time.

This sector is moving fast

Revenue of the country’s wire and cable industry moved forward with compound annual growth of 13 percent in financial year 2019 and 2024. Now with the steps of these two big companies to step into this segment, the possibility of growth in it will increase even more. Its effect will also be seen in the stock market. The share prices of companies listed in the wire and cable segment declined after March 19.

The share of Polycab India and KEI Industries, the largest company in this segment, reached the low-lying level of 52-week on March 20. Similarly, the share price of Havells also declined by 5 percent. The next day the shares of Finolex cables also fell to 4 percent.

Ideal segment for investment of big companies

Brokerage firm JM Financial, describing the wire and cable segment as ideal for more capital investors, said, it is an industry where any company does not have more than 15 % stake in wire and more than 20 % in cable.

There are many opportunities for growth

The total number of small and big companies in this industry is around 400 and revenue is between 50-400 crores. According to global brokerage firm Jefferies, there are attractive opportunities in India about Rs 80,000 crore cable and wire industry (Rs 56,000 crore cable and Rs 24,000 crore wire).

Jefferies’ analyst believes that there are many growth opportunities in this industry as it is growing in a double digit and 30 percent of the industry is still near the unorganized sector. In the year 2028-29, the size of this industry will reach Rs 1,30,000 crore.

Also read:

So that’s why on March 31, the tradition of closing of financial year, tradition is going on with English rule