Aditya Birla Real Estate Shares in Focus on Selling Pulp and Paper Business to ITC for ₹3,498 Crore

Aditya Birla Real Estate Ltd (ABREL) has announced the sale of its pulp and paper business to ITC Limited for a total cash consideration of ₹3,498 crore. The strategic move is part of ABREL’s broader plan to concentrate on its core real estate operations.

Strategic Divestment for Business Focus

In a regulatory filing, ABREL stated that its board has approved the execution of a business transfer agreement for the divestment of the pulp and paper undertaking situated in Lalkuan, Uttarakhand. This sale will be conducted through a slump sale mechanism, wherein ITC will pay the full consideration in cash.

The decision to divest the pulp and paper business is a value-unlocking initiative aimed at enabling the company to strengthen its real estate focus. “It will further enable the company to pursue growth opportunities in its core business – real estate,” ABREL said in its statement.

Management’s Perspective on the Deal

R K Dalmia, Managing Director of Aditya Birla Real Estate, emphasised the strategic significance of the transaction. “The divestment of the Pulp and Paper undertaking by ABREL is a strategic portfolio choice and unlocks value for the shareholders of ABREL.”

He further added, “The company has embarked on a transformational growth phase, and this move will further sharpen its focus on real estate to drive sustained value creation.”

Speaking about the legacy and future prospects of the pulp and paper business, Dalmia stated, “Over the years, Century Pulp and Paper has become synonymous with strong performance and high sustainability standards. To take it to the next level in size and value, the company is pleased to have found in ITC, a credible and well-established player.”

ABREL Share Performance 

As of April 01, 2025, at 10:20 AM, ABREL share price was trading at ₹1,988.05 per share, reflecting a surge of 1.44% over its previous closing price.

Conclusion

With this strategic divestment, ABREL aims to strengthen its presence in the real estate sector, while ITC expands its footprint in the pulp and paper industry. The deal reflects ABREL’s commitment to refining its business portfolio and focusing on its core competencies.

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