Barclays is aiming to launch the sale of KKR-backed Indian environment solutions company Re Sustainability by the end of September, according to two sources familiar.

Founder Alla Ayodhya Rami Reddy will retain a 20% stake in the non-municipal arm after Hyderabad-based Re Sustainability is split into two, the sources said, with KKR selling the municipal arm back to Reddy.

The non-municipal arm includes recycling, industrial and biomedical waste management, and environmental services.

This is the third time the private equity giant is attempting a deal, following efforts in 2021 and again in 2022, when it appointed JP Morgan to run a sale for the entire company.

In May 2022, sources told Infralogic there was little interest due to the complexities of a business that requires dealing with local contractors, municipal bodies and managing the environmental, social and corporate governance (ESG) aspect of large landfills.

This led to the decision to split the business in two. KKR in June this year additionally appointed Barclays, which knows the business well having worked on the deal to sell KKR 60% of the company, then known as Ramky Enviro Engineers, in 2019.

KKR paid USD 510m via a combination of primary and secondary capital for the stake.

“They’re still working on the details of the split now,” one of the sources said.

Re Sustainability manages 7 million tonnes of municipal solid waste annually, according to its website.

Barclays and KKR declined to comment. Re Sustainability did not respond to a request for comment.