CCI Okays Restructuring Of Re Sustainability’s Operations

In a landmark decision, the Competition Commission of India (CCI) has approved the restructuring of Re Sustainability Limited (ReSL), along with its subsidiaries and joint ventures. This restructuring involves the demerger of ReSL's municipal solid waste business and waste-to-energy operations into a newly formed entity, Ramky Sustainability Solutions Private Limited (RSSPL). 

The entities involved in this strategic combination include ReSL, Mumbai Waste Management Limited (MWML), RSSPL, Metropolis Investment Holdings Pte. Ltd. (Metropolis), and the Founding Group. Following the proposed combination, the shareholding structure of RSSPL will closely reflect ReSL’s current shareholding pattern, preserving the interests of both Metropolis and the Founding Group. 

Re Sustainability Limited, an industry leader in India, operates across several waste management sectors, including industrial waste, municipal solid waste, biomedical waste management, waste-to-energy plant operations, and recycling services. Post-restructuring, the company will retain its core businesses while ceding control of the MSW and WTE operations to RSSPL.

MWML, a wholly owned subsidiary of ReSL, is slated to merge into ReSL, thereby ceasing to exist as a separate entity. MWML has been a critical player in the industrial and biomedical waste management sectors within India. 

RSSPL, the newly incorporated entity, currently holds no business activities in India.

However, following the demerger, it will assume control of the municipal solid waste and waste-to-energy businesses, mirroring the shareholding of ReSL. 

Metropolis, an investment firm registered under the laws of Singapore and functioning under the SEBI (Foreign Venture Capital Investor) Regulations of 2000, is indirectly owned by funds and accounts managed by subsidiaries of KKR & Co. Inc. This global investment firm, KKR, is known for its expertise in alternative asset management, capital markets, and insurance solutions, sponsoring funds that invest in private equity, credit, and tangible assets. 

The Founding Group, consisting of individual family members and RK Ventures, holds shares in ReSL and is part of the broader Ramky group.

The group’s diversified portfolio includes activities in waste management, infrastructure development, real estate, and pharmaceuticals. 

This restructuring marks a pivotal moment for Re Sustainability Limited as it strategically shifts its focus and resources, positioning RSSPL to drive forward its newly acquired business sectors.