India’s Century Textiles Hives off Cement Business, Investing in Paper Operations

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In India, Aditya Birla subsidiary Century Textiles has finally hived off its cement business, in a transaction first announced in mid-2018.

Fellow Indian firm UltraTech Cement acquired it through a share swap and by taking over debt worth about Rupee 30 billion.

The legal approval of the deal only went through at the beginning of October.

According to Century Textiles, the move is giving it breathing room to focus on its paper and real estate concerns.

The firm runs a single mill in Nainatal, Uttarakband, whose six PMs can produce around 471,000 mtpy of tissue, uncoated woodfree paper, and cartonboard. About 36,000 mtpy of that is tissue.

Since announcing the cement business divestment, Century has unveiled a project to build a 36,000-mtpy Valmet tissue machine at the Nainatal mill, with a hitherto undefined timeline.

It is also commissioning a 45,000-mtpy satellite precipitated calcium carbonate plant, which is scheduled to come online in Q2 next year.

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