Ramky Enviro looks to triple revenue in 3 years

HYDERABAD: Ramky Enviro Engineers, one of Asia’s largest environmental solutions providers that was acquired by global private equity firm KKR last year for around $510 million, is looking to triple its revenues in three years on the back of aggressive global expansion.

“We are eying to triple our revenues over the next three years as projects involving investments of over Rs 2,700 crore will take off with significant revenue contributions,” Ramky Enviro Engineers (REEL) CEO and managing director M Goutham Reddy told
ET.

The Hyderabad-headquartered company plans to aggressively expand its global operations to earn majority of its revenues from global projects. REEL, which currently earns two-thirds of its income from within the country, hopes to close this fiscal with revenues of around Rs 2,700 crore and EBITDA (earnings before interest, taxation, depreciation, and amortisation) of around Rs 700 crore, Reddy said. The company hopes to maintain an EBITDA margin of around 26% and a net profit margin of around 13%.

“The target is to earn a majority of revenues from global operations over the next few years by tapping the huge opportunities in emerging economies,” Reddy said. He said the company has enough internal accruals and around Rs 650 crore of funds pumped in by KKR to expand its operations. REEL has operations in nine countries, and looks to increase the number to 12 countries in a year or so. Apart from India, the company has operations in Oman, Kuwait, the UAE, Jordan, Saudi Arabia, Africa, Singapore, and Indonesia. It has so far invested over Rs 950 crore on existing operational projects across the globe. To ensure annual growth of 30-35% in top and bottom lines of its Indian operations, the Ramky group entity has chalked out aggressive expansion of its waste-to energy projects. It operates India’s largest waste-to-energy project of 24 MW in Delhi that processes 2,400 tonnes of solid waste per day.