ITC's Sanjiv Puri Calls CPP Acquisition 'Defining Milestone' for Paper Business Strategy

The Quick Take

• ITC CMD Sanjiv Puri calls CPP acquisition a 'defining milestone' for the paper business
• Combined ITC-Century Pulp entity strengthens position in Indian paper and packaging market
• E-commerce corrugated packaging growth partially offsets printing paper secular decline

ITC Limited's Chairman and Managing Director Sanjiv Puri has publicly described the company's acquisition of Century Pulp and Paper (CPP) as a 'defining milestone' for ITC's paper and paperboard business, underscoring the strategic importance of the deal for the conglomerate's diversification beyond its core cigarettes segment. In a social media post welcoming the CPP workforce, Puri emphasized shared commitments to excellence, innovation, competitiveness, and sustainability — language consistent with a long-term integration strategy. The acquisition expands ITC's paper manufacturing capacity and geographic footprint.

Century Pulp and Paper, previously part of the Century Textiles and Industries group, brings additional capacity in writing, printing, and specialty paper segments that complement ITC's existing ITC Papers business. The combined entity would strengthen ITC's position in the Indian paper industry against multinational competitors and create cross-selling opportunities leveraging ITC's distribution network. For ITC shareholders, the CPP acquisition is one of the more concrete expressions of the company's stated strategy of using financial strength — built on cigarette profits — to scale adjacent non-tobacco businesses toward meaningful revenue contribution.

The paper and packaging industry is undergoing structural transformation driven by e-commerce growth, which is expanding demand for corrugated boxes and specialty packaging, while traditional printing and writing paper faces secular headwinds from digital media adoption. ITC's CPP acquisition positions the company to capture packaging paper demand growth while managing the writing/printing transition. For investors evaluating ITC's diversification thesis, the CPP integration's profitability contribution in the first 12-18 months post-acquisition will be a key indicator of whether capital allocation to the paper segment is justified.

Synthesized from 1 source.