I Squared Capital and a consortium of TPG and Canada Pension Plan Investment Board (CPPIB) have emerged as the final contenders to acquire a controlling stake in KKR-backed Re Sustainability Ltd., according to four people familiar with the matter.
The transaction is expected to value the Hyderabad-based waste management company, formerly known as Ramky Enviro Engineers Ltd., at more than $1.6 billion, with binding bids due over the next 10-15 days, the people said on the condition of anonymity.
Other investors, including Bain and Advent, which were evaluating the asset, have dropped out of the process, two of the people said. A third person confirmed the above details and added that I Squared Capital is in discussions with several firms to place a joint bid.
A potential deal would mark KKR’s final exit from its eight-year investment in Re Sustainability after the global private equity firm sold the company’s municipal business back to the founders and explored other exit routes, including a planned public listing.
Founded in 1994, Re Sustainability provides services spanning municipal solid waste, industrial waste, biomedical waste and e-waste management, alongside recycling and waste-to-energy projects. The company was founded by Alla Ayodhya Rami Reddy, then a member of Parliament from the YSR Congress Party.
The company—which also offers integrated environmental services including water and wastewater treatment, desalination plants, laboratory services and waste containment—reported consolidated revenue of ₹2,305 crore in FY25, up from ₹2,130 crore a year earlier, driven primarily by growth in its industrial waste management business, according to a January report by India Ratings.
While TPG, CPPIB, I Squared Capital, Advent and KKR declined to comment, Re Sustainability and Bain Capital did not immediately respond to Mint‘s requests for comment till press time.
Exit strategy
The proposed sale caps a years-long effort by KKR to monetize its investment in the company.
The private equity firm acquired a 60% stake in Re Sustainability—then called Ramky Enviro Engineers Ltd—in 2018 for $530 million, with the Reddy family holding the rest.
In 2024, Mint reported that KKR set the stage for an exit from RE Sustainability by selling the municipal business back to its founders and hiring bankers to find a buyer for the remaining industrial waste business.
In preparation for the exit, the company’s municipal and industrial waste businesses were separated, with the founders taking full control of the former, and KKR owning the latter.
The report also highlighted that Barclays and JP Morgan were brought in as advisors to help the global private equity firm sell the remaining stake at a $1 billion valuation.
Waste management leader
According to a January report by India Ratings, Re Sustainability remains India’s largest private player in the industrial waste management (IWM) segment, which contributes nearly 80% of the company’s FY25 Ebitda. Other companies of note in this segment include Veolia India, SUEZ India, Recykal and Concord Enviro Systems, as per online reports.
The report by India Ratings said the IWM business benefits from significant entry barriers arising from captive catchment dynamics, stringent regulatory approvals and specialised infrastructure requirements. It also generates recurring revenues from a diversified industrial customer base across sectors including fast-moving consumer goods, chemicals, fertilisers and automobiles.
The rating agency expects revenue to grow 10-15% in FY26, with stronger growth anticipated in FY27, supported by expansion in biomedical waste management, recycling operations and its Singapore business.
