ITC Ltd, India's largest cigarette maker, is in talks with Century Textile and Industries Ltd to buy its paper division in a bid to diversify revenue to non-tobacco businesses, said two sources directly involved in the deal.
In separate transactions, Century's textile division will be merged with India's Aditya Birla Nuvo Ltd and the cement unit will be merged with UltraTech Cement Ltd, as part of the company's restructuring, the sources said. The sources declined to be named as the deal talks were not public yet.
Axis Bank is advising Century Textile on the restructuring process, the sources said.
A spokeswoman for Aditya Birla group declined to comment and a spokesman for ITC did not immediately reply to Reuters request for comment. Century Textile's officials were not immediately reachable. Axis Capital spokeswoman did not immediately offered comments.