Century Pulp & Paper

Sector: Pulp and Paper  |  HQ: Mumbai, Maharashtra, India  |  Founded: 1984  |  Employees: unknown

Listed as: NSE / BSE listed (CENTURYTEX)  |  NSE / BSE  |  Ticker: CENTURYTEX.NS

Company overview

Century Pulp and Paper is a major Indian integrated pulp, paper and tissue manufacturer that until 2022 was part of Century Textiles and Industries, the BK Birla group flagship listed on the BSE. The business was acquired by ITC Limited in 2022 for ₹3,498 crore, making it a subsidiary of ITC's paperboards and specialty papers business and bringing one of India's largest pulp and paper mills under the ITC umbrella. The integrated mill at Lalkuan in Uttarakhand has a capacity of around 5 lakh tonnes per annum across writing and printing paper, tissue paper, rayon grade pulp and paperboard. The Lalkuan facility is one of the few Indian pulp and paper mills with integrated rayon grade pulp manufacturing, supplying viscose staple fibre producers including Grasim Industries. The product portfolio spans coated and uncoated writing and printing paper, copier paper, tissue paper, rayon grade dissolving pulp and selected specialty grades. Distribution is national across publishers, printers, packaging converters, tissue product manufacturers and viscose fibre producers. As an ITC subsidiary post acquisition, Century Pulp and Paper now reports as part of ITC's paperboards, paper and packaging segment.

Competitive position

Century Pulp and Paper sits among India's top integrated pulp and paper producers alongside ITC's existing Bhadrachalam and Bollarum mills, JK Paper, West Coast Paper Mills, Tamil Nadu Newsprint and Papers, Andhra Paper and Emami Paper. Its advantage is the integrated rayon grade pulp manufacturing capability that few Indian peers match, the proximity to North Indian markets, and now the backing of ITC's commercial scale and balance sheet. Its disadvantage is exposure to writing and printing paper demand which is structurally challenged by digitalisation, although tissue and specialty papers are offsetting growth segments.

Key risks

Writing and printing paper decline from digitalisation Pulp price and energy cost volatility Tightening environmental discharge norms cost burden

Outlook

Century Pulp and Paper was set up at Lalkuan in Uttarakhand by Century Textiles and Industries in the early 1980s, with commercial operations beginning in 1984. The mill was designed as an integrated pulp and paper facility with bamboo and hardwood as raw material, and over the decades was progressively expanded with additional capacity in writing and printing paper, rayon grade pulp, tissue paper and paperboard. The rayon grade pulp segment was a strategic differentiator, supplying dissolving pulp to Grasim Industries' viscose staple fibre operations and other viscose producers. This vertical link gave Century Pulp and Paper a captive long term offtake for a meaningful portion of its pulp capacity and provided margin stability through pulp price cycles. In 2022 ITC Limited announced the acquisition of Century Pulp and Paper from Century Textiles for ₹3,498 crore. The acquisition added approximately 4.8 lakh tonnes of annual capacity to ITC's existing paperboards and specialty papers business, taking ITC's overall capacity to around 1.7 million tonnes per annum and consolidating its leadership in Indian paperboards. The transaction was completed and Century Pulp and Paper became a subsidiary of ITC. The Lalkuan integrated mill is large by Indian standards. It produces writing and printing paper for publishing, education and copier applications, tissue paper for consumer and industrial use, rayon grade dissolving pulp for viscose fibre producers, and selected specialty papers. The mill has both bamboo and hardwood pulping capability and uses both elemental chlorine free and totally chlorine free bleaching technologies for its various product lines. Distribution is national, served through paper distributors, direct sales to large publishers, packaging converters, tissue product manufacturers and viscose fibre producers. Under ITC ownership the business benefits from access to ITC's broader paperboards distribution and customer relationships, particularly for value added grades. Financials post acquisition are consolidated within ITC's paperboards, paper and packaging segment, which reported revenue above ₹8,000 crore in FY 2023-24. Century Pulp and Paper specifically contributes a meaningful share of this segment revenue, with the integrated mill operating at high capacity utilisation. EBITDA margins in Indian paper have been volatile, driven by pulp prices, energy costs and finished paper realisations. The Indian paper industry has seen mixed performance through 2022-2025. Writing and printing paper demand has been pressured by digitalisation, although the National Education Policy implementation has provided some support through textbook printing. Tissue paper has grown at double digit rates with rising hygiene awareness and HoReCa penetration. Packaging and paperboard have grown strongly with e commerce and FMCG demand. Rayon grade pulp prices have fluctuated with global viscose fibre cycles and Chinese capacity additions. Strategy from 2025 to 2030 under ITC ownership is shaped by ITC's overall paperboards and packaging strategy. The integration brings synergies in sourcing, sustainability investments including the Wood Plus farm forestry programme for raw material, capacity expansion and modernisation. ITC has signalled continued investment in expanded paperboard capacity to capture the growing premium packaging segment driven by e commerce, FMCG and pharmaceutical end markets. The regulatory environment for pulp and paper is shaped by the Water (Prevention and Control of Pollution) Act 1974, the Air (Prevention and Control of Pollution) Act 1981, the Environment (Protection) Act 1986, the Forest Conservation Act 1980 and the Forest Rights Act 2006 for raw material sourcing, BIS standards for various paper grades, FSSAI standards for food contact paper grades, and Companies Act 2013 and SEBI LODR for ITC as the listed parent. Discharge norms under the Pulp and Paper Industry minimal national standards are particularly stringent. Key risks include pulp price volatility, energy and coal costs which form a significant share of cost structure, structural decline in writing and printing paper demand from digitalisation, environmental compliance cost inflation as discharge norms tighten, raw material availability and pricing for bamboo and hardwood, and integration risks under ITC's organisational structure although these are now substantially behind. Management post acquisition is integrated into ITC's paperboards business, which is led by a divisional chief executive within the ITC structure. The mill in Lalkuan continues to be run by a senior management team focused on operational excellence and capacity utilisation. Governance is now under ITC Limited which is listed and follows SEBI LODR standards. ESG performance is reported under ITC's overall sustainability framework which is among the most extensive in Indian industry. Pulp and paper operations are reported on water positive operations, carbon emissions, renewable energy share, farm forestry programme for raw material that supports farmer livelihoods, and effluent quality standards.

KAMRIT point of view

Building or competing with Century?

KAMRIT advises promoters, family offices, and global enterprises evaluating greenfield entry into the pulp and paper sector. Our Bankable DPR with Cost Model and ROI benchmarks your project economics against the listed-company cost structure of Century and peers. The Execution Partnership tier covers everything from incorporation through commissioning. A 20-minute scoping call with our partners is free.

View all 1 related project report → Book a scoping call

Related KAMRIT project reports

These reports use Century Pulp & Paper in benchmarking and competitive analysis sections.

Disclaimer: This profile is compiled by KAMRIT Financial Services LLP for educational and benchmarking purposes only. It is not investment advice, a recommendation to buy or sell securities, or a solicitation. Stock data is provided by Yahoo Finance and may be delayed by up to 20 minutes. Company financial commentary draws on publicly available filings, exchange disclosures, and KAMRIT industry research. Readers should consult a SEBI-registered investment adviser before making investment decisions. KAMRIT is a financial services and compliance firm, not a SEBI-registered investment adviser.