KKR buys 60% stake in Ramky Enviro for 3,630 cr

Hyderabad: Global investment firm KKR and Ramky Enviro Engineers Limited - provider of environmental services and solutions in India and overseas, on Monday announced the completion of their previously announced transaction.Under the terms of the transaction, KKR has acquired a 60 per cent stake in Ramky Enviro for Rs 3630crore via a combination of primary and secondary investments.

In addition to investing in Ramky Enviro from its KKR Asian Fund III, the investment is part of KKR’s Global Impact strategy, which is focused on identifying and investing behind businesses with positive social or environmental impact that measurably contribute solutions to one or more of the United Nations Sustainable Development Goals.

Goutham Reddy, Managing Director & CEO of REEL, said, “India is home to some of the world’s most pressing waste management needs, and Ramky Enviro has an important role to play in providing critical solutions to communities across the country.

This company’s social initiative was first envisioned by its founder Ayodhya Rami Reddy, andnow it has found a global partner in KKR.  KKR’s expertise in environmental issue management, extensive global and local resources, and aligned vision to enact positive change makes KKR the ideal partner to help us keep pace with the environmental challenges facing our society and provide impactful solutions.

We are off to a great start with multiple strong hires added to the management team and process enhancements work to better our ESG efforts. Ramky Enviro will continue its socially impactful environmental workaround Climate Change and will focus on emerging markets with renewed vigour with this new partnership and investment.”

Rupen Jhaveri, Managing Director at KKR,added, “Supporting promising companies that offer solutions to global challenges in areas such as the environment, health and human capital has become an increasingly important focus for KKR worldwide.

Ramky Enviro is exemplary in being a comprehensive environmental management company whose work supports the Swachh Bharat (Clean India) Mission to reduce pollution and improve critical sanitation infrastructure nationwide. We are confident that, with our industry experience and resources, REEL will be better positioned to achieve its social mission over the long term.”

Robert Antablin and Ken Mehlman, co-heads of KKR Global Impact, said, “Responsibly managing waste is a critical global challenge, particularly in one of the world’s fastest growing nations. We believe Ramky Enviro will address this critical need while advancing two of the United Nations Sustainable Development Goals.”