Climate fund expands into waste water recycling in India

Zurich, 7 February 2019 — The responsAbility-managed climate fund and India-based Roserve Enviro Private Limited have announced their cooperation for financing energy-efficient waste-water recycling systems offered to industrial clients. Under the agreement, the fund will subscribe to Indian rupee denominated green bonds worth USD 8 m issued by the company. The sector is poised for strong growth on the back of stringent pollution control guidelines and reduced availability of fresh water for industrial clients.

Mumbai-based Roserve provides waste water recycling solutions to industrial clients on an operating lease, build-own-operate or build-own-operate-transfer basis. The systems enable industries to reduce energy consumption while meeting waste water recycling and discharge regulations and managing the environmental impact of their operations. The contracts range from a few months to up to 6 years. 

Roserve has provided solutions to leading corporates across a number of industries including pharmaceutical, textile, food & beverage, automotive, paper, tanneries and chemicals. At the end of 2018, Roserve had installed 23 projects worth around USD 10 m. 

The funds raised through the Indian Rupee denominated green bonds subscribed by the responsAbility-managed climate fund are designed to help execute projects currently in Roserve’s order book.

With several cities facing water crises, water security ranks high in the minds of Indian policymakers. Scarcity of water leads to supply restrictions and lost output for industrial users. The reuse of treated wastewater is getting strong policy support from the government with the Central Pollution Control Board implementing Zero Liquid Discharge (ZLD) guidelines for a number of industries. This is creating a sizeable demand for industrial waste water treatment systems and especially ZLD which is expected to be a USD 4 billion industry in the next 5 years.

Commenting on the agreement, Roserve founder Prayas Goel said: “The economic advantages of reclaimed water as a climate-proof source of water supply across industries is becoming increasingly compelling. On the back of local banks’ reluctance to finance innovative business models, we are pleased to team up with the climate fund to drive our expansion.”

Speaking on behalf of responsAbility, Antoine Prédour, Head of Energy Debt, underlined: “Roserve is one of the leading players in India’s waste water treatment sector. This new partnership allows us to contribute to the SDGs while providing investors access to this promising growth market.”

About Roserve (roserve.in) Mumbai-based Roserve Enviro Pvt Ltd offers waste water management solutions to industrial clients on a ‘pay-as-you-treat’ model, allowing companies to peg the cost of waste water recycling and recovery to their final output. A joint venture between Concord Enviro Systems Pvt. Ltd., a leading manufacturer and service provider of industrial waste water recycling and desalination systems, and Danish Climate Investment Fund, Roserve is part of the Concord Group and fully equipped to handle all operations and maintenance activities of the equipment's given out on lease.

About responsAbility Investments AG (www.responsability.com) A leading asset manager for impact investments in emerging economies, responsAbility manages USD 3 bn of assets through a variety of investment vehicles that provide private debt and private equity to some 540 companies with inclusive business models across 90 countries. Founded in 2003, the company is headquartered in Zurich, Switzerland, and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. 

Contacts Roserve Enviro Pvt. Ltd Turbaashu Bhattacharya turbaashu.b@roserve.in +91 22 6704 9029