KKR-Backed Renewable Energy Firm Re Enters High-Stakes Sale Process

KKR's Re-Sustainability Unit Draws Major Players in $2 Billion Sale

In a significant development, multiple industry sources have revealed that US private equity major TPG, Canadian investment giant CPPIB, French environmental services company Veolia, and global infrastructure investor I Squared Capital have held discussions to participate in the ongoing sale of KKR-backed Re Sustainability Limited, formerly Ramky Enviro Engineers Limited.

The sale process, which was re-launched by KKR on April 17, is expected to attract a valuation of over $2 billion. As reported by Moneycontrol earlier, Blackstone, Advent International, TPG, Macquarie Group, Bain Capital, Carlyle, and CVC Capital are likely to show preliminary interest in the integrated resource management player, the largest Indian private player in the waste management segment.

Industry sources suggest that suitors are likely to join forces and proceed via consortiums due to the large size of the cheque involved. TPG is reportedly exploring a joint bid with CPPIB, while Veolia and I Squared Capital are keen to tie-up. Advent International is also scouting for a partner. Additionally, EQT, La Caisse (formerly CDPQ), and NIIF may also evince early interest in the proposed transaction.

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Preliminary, non-binding offers are expected to be submitted by interested parties by the end of April or early May. KKR, CPPIB, Veolia, I Squared Capital, Advent International, La Caisse (formerly CDPQ), and NIIF have not commented on the matter. TPG and EQT have also declined to comment.

KKR's Fresh Sale Attempt

This is a fresh sale attempt by KKR, which has been invested in Re Sustainability Limited for nearly 8 years. The proposed transaction follows a demerger of Re Sustainability Limited, as part of which the municipal solid waste management business was separated and sold back to the firm's founder Alla Ayodhya Rami Reddy. The official nod for the internal reorg from the National Company Law Tribunal (NCLT) has been received.

Veolia's India Connection

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Veolia has a significant presence in India, with key projects including the largest contracts ever signed by a French company in the municipal water sector for two of Mumbai's largest Water Treatment Plants (WTPs). The firm also operates Gujarat's first Zero Liquid Discharge (ZLD) facility in Ankleshwar and is developing a landfill facility in Magnad, set to become India's largest industrial hazardous waste landfill.

Re Sustainability: Business and Regulatory Outlook

According to a report by India Ratings & Research, Re Sustainability's industrial waste management (IWM) business benefits from significant entry barriers due to captive catchment dynamics, stringent regulatory approvals, and the need for specialized infrastructure. The retained operations also include biomedical waste (BMW) management, which enjoys regulatory protection as new facilities cannot be set up within 75km of an existing common treatment facility, limiting competition in this segment.

The report adds that the retained business continues to benefit from structural demand tailwinds over the medium term, which will restore the operating scale and profitability by FY27 to levels broadly comparable to those prior to the demerger.