US-based International Paper, the world's largest paper company, is in talks to buy BK Birla's Century Textiles' paper business in a deal valued at over Rs2,000 crores ($394 million), the Economic Times today reported, citing unidentified people in the know of the matter.
The move from the NYSE-listed company comes after it had acquired a controlling 75-per cent stake in Andhra Pradesh Paper Mills in 2011 for $338 million (Rs1,660 crore).
Century Textiles' paper grade pulp, and writing and printing paper unit was established in 1984 at Lalkua, near Nainital in the state of Uttarakhand, and is headed by B K Birla's grandson Kumar Mangalam Birla.
Its second paper unit, based on bagasse manufacturing, is adjacent to the existing pulp and paper plant at Lalkua. The company also has a prime-grade tissue paper plant at Lalkua.
The company's fibre line (pulp plant), with a capacity of 1.62 lakh tonnes per annum, and multilayer packaging board plant, with a capacity of 1.8 lakh tonnes per annum, are nearing completion.
The division's range of products includes a large variety of writing and printing paper, tissue paper and paper board. The company also manufactures raw material for viscose filament yarn, staple fibre and paper grade pulp.