ITC will strengthen its paperboards business through capacity expansion, sustainability initiatives and import substitution under its INR 20,000 crore manufacturing plan.
Jul 27, 2026
ITC Ltd. has announced an INR 20,000 crore capital expenditure plan over the medium term to expand its manufacturing footprint, with paperboards, paper and sustainable packaging emerging as key focus areas. The investment aims to strengthen domestic manufacturing capabilities, enhance export competitiveness and accelerate import substitution.
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Speaking about the company’s paper business, ITC Chairman and Managing Director Sanjiv Puri said the proposed acquisition of Century Pulp and Paper will further reinforce the company’s leadership in the segment, increasing its paper and paperboards production capacity by more than 50 percent to 1.5 million metric tonnes. The company has also commissioned a state-of-the-art moulded fibre products facility to manufacture engineered compostable alternatives to single-use plastics for both domestic and export markets.
Puri added that ITC’s distributed manufacturing network is increasingly powered by digital technologies, with an AI-first backbone improving operational efficiency, responsiveness and cost optimisation across facilities. Several manufacturing units now meet nearly 100 percent of their electricity requirements through renewable energy, while others have achieved platinum-rated green building standards and global Alliance for Water Stewardship (AWS) benchmarks. He also noted that women now constitute the majority of the workforce at several manufacturing facilities.
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Highlighting the company’s import substitution strategy, Puri said ITC pioneered the Bharat Fibre value chain for its paperboards business, helping green nearly 1.5 million acres while generating more than 270 million person-days of employment. He added that investments in domestic pulp, capsule manufacturing and decor paper production are expected to generate foreign exchange savings of over INR 17,500 crore over the next decade.
