US based International Paper is in talks to buy BK Birla's Century Textiles' paper business, in a deal, which is estimated to be valued over Rs 2,000 crore. The company, which is looking at inorganic route for growth in the Indian market, had last year acquired a controlling 75-per cent stake in Andhra Pradesh Paper Mills for $338 million.
Century Textiles' paper grade pulp, and writing and printing paper unit was established in 1984 at Lalkua, near Nainital in the state of Uttarakhand. Century also has recently invested in setting up specialised paper making capacity to improve margins; it has capabilities in tissue paper and packing paper products.
Century Textiles has three business verticals cement, textiles and paper. Largest revenue contribution comes from the cement business at 60% while textiles and paper verticals account for 20% each. Meanwhile, US-based International Paper is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.