ITC Limited has successfully completed its acquisition of Century Pulp and Paper (CPP), transforming the company into India's largest integrated paperboards and paper business. According to reports from ET Now, the transaction adds CPP's annual capacity of 4.8 lakh metric tonnes to ITC's Paperboards and Specialty Papers portfolio, taking the company's total installed capacity to around 1.5 million metric tonnes. This represents an increase of more than 50% in ITC's manufacturing capabilities. The acquisition also marks the operational completion of the divestment, with the transaction executed on a slump sale basis as a going concern.
The acquisition comes at a strategic time as India's paper and paperboards industry experiences rising demand. As reported by ET Now, India is currently the world's fifth-largest producer of paper with annual production of around 23 million MT, but per capita consumption remains relatively low at approximately 16 kg, compared with the global average of 57 kg. The domestic market is growing at an estimated 6-7% annually, translating into additional demand of more than one million MT every year.
The addition of CPP will significantly expand ITC's manufacturing network, particularly in northern India. According to ET Now, the larger footprint will bring ITC's operations closer to important raw material sources and customers. The combined network is expected to provide greater operational resilience and improve the company's ability to respond to changing market demand. ITC Chairman Sanjiv Puri welcomed the CPP workforce, stating the acquisition brings together two businesses with a focus on innovation, competitiveness and sustainable value creation.
ITC is expanding its focus on sustainable sourcing through its Bharat Fibre initiative and farm forestry programme, developing a domestic fibre base while supporting rural livelihoods. As reported by ET Now, the Paperboards business recorded its highest plantation coverage of around 66,000 hectares in FY26, with ITC's wider plantation programme covering nearly 1.5 million acres and generating more than 270 million person-days of employment. The company's sustainable packaging segment has grown 2.4 times between FY22 and FY26, including recyclable and compostable packaging designed to replace single-use plastics.
The CPP acquisition forms part of ITC's broader ITC Next strategy, focusing on improving competitiveness through scale, supply chain agility, innovation and digital transformation. According to ET Now, the acquisition adds capacity to an already integrated operating model that includes access to renewable fibre, in-house pulp capabilities, product development and links with ITC's Packaging and Printing and Education and Stationery businesses. The company is focusing on integration, import substitution and investment in domestic capabilities amid competition from low-priced imports and rising input costs.
