Aditya Birla Exits Paper Business with ₹3,498 Cr. Sale to ITC

In a major business reshuffle, Aditya Birla Real Estate Limited (ABREL) has decided to exit the paper industry and focus entirely on real estate. The company has signed a deal to sell Century Pulp and Paper (CPP), located in Lalkuan, Uttarakhand, to ITC for ₹3,498 crore. This move is aimed at unlocking value for shareholders while allowing ITC to expand its paperboards and specialty papers business.

According to R.K. Dalmia, Managing Director of ABREL, this deal is a part of the company's long-term strategy to drive transformational growth. The divestment will allow Aditya Birla to put more resources into its real estate expansion, an area where it has seen tremendous success in recent years.

Financial Performance & Growth

Century Pulp and Paper had a revenue of ₹2,382.50 crore in the first nine months of FY25, reflecting a 5.34% decline compared to the previous year. In FY24, the business generated ₹3,375.32 crore, marking a 5.5% year-on-year dip.

On the other hand, Aditya Birla Real Estate has witnessed explosive growth. The company’s real estate revenue for 9MFY25 stood at ₹7,771.7 crore, a five-fold increase from the previous year. For FY24, the revenue from real estate was ₹832.21 crore, a six-fold jump compared to the previous year.

ABREL’s Real Estate Expansion

With its full focus on real estate, Aditya Birla is aggressively expanding in Mumbai, Bengaluru, Pune, and the NCR. The company is acquiring land, entering joint ventures, and adopting light-asset projects to accelerate growth.

One of the key highlights of this expansion is Birla Estates, a subsidiary of ABREL, which sold homes worth ₹3,000 crore in FY25. The company also launched its first project in Pune, expected to generate ₹2,700 crore.

Currently, ABREL’s ongoing projects have a Gross Development Value (GDV) of ₹14,980 crore, and upcoming projects are expected to add a GDV of ₹48,367 crore.

Aditya Birla Capital Completes Merger with Finance Unit

In another major move, Aditya Birla Capital has merged with its subsidiary, Aditya Birla Finance, to create a larger NBFC. The merger, approved by the NCLT, Ahmedabad, is effective from April 1.