Portfolio Focus: Ramky Enviro StanC PE Investee Company

Set up in 1994, Ramky Enviro Engineers Limited is a provider of waste management and environmental services in India.

It was set up by Alla Ayodhya Rami Reddy as a liaison agent between companies seeking environment clearance and the pollution control boards. Gradually, it expanded operations into setting up waste treatment plants.

The group now owns 15 biomedical-waste disposal facilities, 14 hazardous-waste management facilities, and manages municipal solid-waste at 14 locations. The group is currently setting up municipal waste management facilities at 14 other locations.

Ramky Enviro has 12 subsidiaries with projects across 28 locations across India, West Asia & Singapore.

In June'09, Ramky Enviro raised R200Cr from Standard Chartered IL&FS Asia Infrastructure Growth Fund (Singapore) and Tara India Fund.

In June this year, Ramky Enviro was planning to invest $100Mn in JV with ITC in new waste paper recycling plant. In Sept this year, Ramky International (Singapore) Private Ltd, a wholly-owned subsidiary of Ramky Enviro Engineers Ltd, has signed a MoU with CITENCO, State-owned environmental and sanitation company of Ho Chi Minh City (HCMC), Vietnam to work together on a waste management project.

Ramky Enviro issued R100Cr NCD's and availed for R142.79Cr term loan.

Performance of Ramky Enviro

The funds were raised through Standard Chartered IL&FS Asia Infrastructure Growth Fund (Singapore), Tara India Holding (Mauritius), Tara India Fund III Domestic Trust (Mumbai) and Tara India Fund III Trust (Mumbai).

The investment of R200Cr included R175Cr of primary and R25Cr of secondary component. The company issued compulsory convertible preference shares to investors that will be converted into equity based on the performance over the next three years.

StanChart IL&FS Asia Infrastructure Growth Fund is a fund jointly raised by IL&FS and Standard Chartered Bank. The fund invests in the infrastructure sector, including transportation, energy, power, water, environment, telecom and urban infrastructure.

Tara India Fund III, a $225 Mn fund sponsored by IL&FS invests in infrastructure, consumer services, manufacturing, IT and pharmaceutical-healthcare services. Its other portfolio companies include The Mobile Store, part of the Essar group, GSS America Infotech, Quickjet Cargo Airlines, RBS Group, among others.

In this space, recently Brand Equity Treaties Ltd, an arm of BCCL invested R3.5Cr in e-waste recycling company Eco Recycling Ltd by subscribing to 0.8 Mn equity convertible warrants, while IFCI Venture Capital Funds through its Green India Venture Fund invested Rs.13.5 Cr in Ganesh Polytex Ltd for a 10% stake. Ganesh Polytex is engaged in recyling of post consumer PET bottle waste into Regenerated Polyster Staple Fibre (RPSF) which is also called as fibrefill.

Last year, Noida-based Attero Recycling, an electronic waste recycling company, raised a total of $8.3 Mn in funding from IFC, Granite Hill, IndoUS Venture Partners and Draper Fisher Juvertson.

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