Key Takeaways
- • KKR is reviving its exit strategy for Re Sustainability (formerly Ramky Enviro Engineers) following a court-approved business split, targeting a valuation of $1.0–$1.5 billion for its 60% stake, with a sale process launch planned for January 2026.
- • The NCLT-monitored scheme of arrangement splits Re Sustainability into two entities: KKR will retain control of the industrial waste management, biomedical waste, recycling, and environmental services business (non-government customer base), while selling back its municipal solid waste and waste-to-energy operations to founder Ayodhya Rami Reddy at pre-agreed terms.
- • Global infrastructure funds, strategic waste management operators, and private equity buyers (including I Squared Capital and Eversource Capital) have received initial feelers; advisors JP Morgan and others are coordinating the sale process to identify qualified bidders.
- • This represents KKR's second exit attempt after a 2021 effort involving Brookfield Asset Management failed to close; the restructuring now isolates a higher-margin, diversified B2B waste management platform positioned to benefit from accelerating global ESG adoption by corporates and institutional investors.
- • Re Sustainability is India's largest integrated waste and environment management platform by capacity and project count; KKR acquired its initial 60% stake in August 2018 for $530 million, making this a potential 2.8–2.8x multiple on invested capital over an eight-year hold period.
Summary
KKR is pursuing a renewed exit from Re Sustainability Ltd. (formerly Ramky Enviro Engineers), India's largest integrated waste and environmental management platform, approximately six years after its initial 60% stake acquisition. Following an NCLT-monitored scheme of arrangement approved by the company's board, KKR has initiated a formal sale process targeting a valuation of $1.0–$1.5 billion for its retained stake. According to sources familiar with the matter, the sale launch is scheduled for January 2026, with multiple persons confirming that teasers have already been distributed to prospective buyers.
The business restructuring fundamentally reshapes KKR's portfolio company. The scheme of arrangement splits Re Sustainability into two distinct operations: the "retained business"—encompassing industrial waste management, biomedical waste, recycling, environmental services, and sustainability consultancy with a non-government customer base—will remain under KKR's control. Concurrently, KKR will divest its stake in municipal solid waste management and waste-to-energy operations by selling it back to founder-promoter Ayodhya Rami Reddy. This bifurcation allows KKR to exit a lower-margin municipal business while maintaining exposure to higher-margin, diversified commercial and industrial waste streams with stronger customer stickiness and recurring revenue characteristics.
The sale process has attracted preliminary interest from infrastructure funds and private equity buyers globally. Initial feelers have been sent to strategic suitors including I Squared Capital and Eversource Capital, as well as large waste management operators. According to sources, the combined valuation of the retained industrial waste business "is likely to be upwards of $1.5 billion," reflecting the platform's scale as India's largest waste management operator by project count and operational capacity. The timing of this exit aligns with accelerating corporate and investor adoption of ESG (Environmental, Social, and Governance) metrics globally, positioning Re Sustainability's diversified service portfolio as strategically attractive to both infrastructure-focused buyers and sustainability-oriented private capital.
This exit represents KKR's second attempt to divest its Re Sustainability stake. In 2021, KKR engaged potential buyers including Brookfield Asset Management, with JP Morgan advising the process, but the transaction did not reach completion. The current restructuring addresses a key constraint from the prior effort: isolating a standalone, high-quality industrial waste platform with contracted government-independent revenue streams and operational leverage, rather than selling the entire company at a single valuation. KKR's acquisition of its initial 60% stake in August 2018 for $530 million positioned this as the largest PE buyout in India's environmental services sector at the time. A successful exit at the targeted $1.0–$1.5 billion valuation would generate multiples ranging from 1.9x to 2.8x gross invested capital over an eight-year holding period.
The business restructuring fundamentally reshapes KKR's portfolio company. The scheme of arrangement splits Re Sustainability into two distinct operations: the "retained business"—encompassing industrial waste management, biomedical waste, recycling, environmental services, and sustainability consultancy with a non-government customer base—will remain under KKR's control. Concurrently, KKR will divest its stake in municipal solid waste management and waste-to-energy operations by selling it back to founder-promoter Ayodhya Rami Reddy. This bifurcation allows KKR to exit a lower-margin municipal business while maintaining exposure to higher-margin, diversified commercial and industrial waste streams with stronger customer stickiness and recurring revenue characteristics.
The sale process has attracted preliminary interest from infrastructure funds and private equity buyers globally. Initial feelers have been sent to strategic suitors including I Squared Capital and Eversource Capital, as well as large waste management operators. According to sources, the combined valuation of the retained industrial waste business "is likely to be upwards of $1.5 billion," reflecting the platform's scale as India's largest waste management operator by project count and operational capacity. The timing of this exit aligns with accelerating corporate and investor adoption of ESG (Environmental, Social, and Governance) metrics globally, positioning Re Sustainability's diversified service portfolio as strategically attractive to both infrastructure-focused buyers and sustainability-oriented private capital.
This exit represents KKR's second attempt to divest its Re Sustainability stake. In 2021, KKR engaged potential buyers including Brookfield Asset Management, with JP Morgan advising the process, but the transaction did not reach completion. The current restructuring addresses a key constraint from the prior effort: isolating a standalone, high-quality industrial waste platform with contracted government-independent revenue streams and operational leverage, rather than selling the entire company at a single valuation. KKR's acquisition of its initial 60% stake in August 2018 for $530 million positioned this as the largest PE buyout in India's environmental services sector at the time. A successful exit at the targeted $1.0–$1.5 billion valuation would generate multiples ranging from 1.9x to 2.8x gross invested capital over an eight-year holding period.
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