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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 50.00 | ACUITE BBB- | Stable | Reaffirmed | - |
| Total Outstanding | 50.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) to the Rs. 50.00 Cr. bank facilities of Sayan Utility and Common Infrastructure Private Limited (SUCOI). The outlook is ‘Stable’.
Rationale for rating The rating reaffirmation factors in the ongoing capital expenditure for greenfield projects at Weave Water Enviro Private Limited (WWEPL) and Sayan Utility & Common Infrastructure Private Limited (SUCOI), with a delay resulting in the extension of the commencement of commercial operations (COD) from August 2025 to partial COD in December 2025 and balance in August 2026. This postponement is primarily attributed to adverse weather conditions in the region, which have hindered timely project implementation. The rating also factors in the stable operating performance of the group in FY25 with higher waste processing volumes, however, lower realization. Furthermore, the rating factors in the strong liquidity position and improvement in financial risk profile led by repayment & prepayment of long-term borrowings of ~Rs.220 Cr. over FY25 & H1FY26, through internal accruals and recovery of loans & advances from group companies. The rating also draws comfort from the extensive experience of the promoters and diversified clientele across various industries. The rating continues to be constrained due to the ongoing capital expenditure with delay in COD for greenfield projects undertaken by Weave Water Enviro Private Limited (WWEPL) and Sayan Utility & Common Infrastructure Private Limited (SUCOI), which exposes the group to project implementation risks. Additionally, the rating reflects the substantial cash flow support extended to other group entities through loans and advances. Further, the group operates within a highly regulated industry, making it vulnerable to any changes in government policies or regulatory frameworks. Moreover, the gross calorific value (GCV) generation from waste processing is sensitive to homogeneity in waste quality, which can adversely affect operational performance. |
| About the Company |
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Incorporated in 2021, Sayan Utility And Common Infrastructure Private Limited (SUCOI) is undertaking a greenfield capex for setting up conveyance pipeline infrastructure for effluent collection and distribution of recycled water to the water jet industries in the Sayan-Olpad region near Surat. The estimated total cost of the project stands at Rs.130.35 crores, with commercial operations slated to commence in August 2026. The current directors of the company are Mr. Mayank Satyanarayan Bhattad and Mr. Vinodbhai Lallubhai Surti.
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| About the Group |
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Surat based Green Gene group is engaged in the waste management business through different entities catering to industrial waste and municipal waste management. Additionally, the group is undertaking the development of wastewater management system by setting up 30 million liters per day (MLD) CETP and ZLD facility. The group in total has 9 operating facilities across India located one each at Dadar Nagar Haveli, Tamil Nadu, Telangana & Haryana, two plants in Maharashtra, three in Gujarat.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has considered its consolidation approach by consolidating the standalone business and financial risk profiles of Green Gene Enviro Protection and Infrastructure Limited (GGEPIL), Gujarat Enviro Protection and Infrastructure Haryana Private Limited (GEPIHPL), Green Gene Recyclers Private Limited (GGRPL), Sayan Utility & Common Infrastructure Private Limited (SUCOI) and Weave Water Enviro Private Limited (WWEPL) together referred to as the ‘Green Gene Group’ (GGG). The consolidation is in view of entities having common line of management and financial linkages. Further, GGEPIL have also extended a corporate guarantee to the bank facilities availed by SUCOI and WWEPL.
Previously, Acuite used to consolidate Recycling Solutions Private Limited (RSPL) and Envoy Carrier Private Limited (ECPL), however, the group has now merged RSPL, ECPL and few other companies into GGEPIL. |
| Key Rating Drivers |
| Strengths |
| Extensive management experience and established track record of operations
The Luthra Group diversified into the waste management and alternate fuel processing business in the year 1999. The waste management business is operated under the Green Gene Group (GGG) and the business operations are presently managed by Mr. Girish Luthra who has an experience of over three decades in the same. The GGG caters to different sectors including pharmaceutical, automobile, chemical manufacturing, textile among others, thereby ensuring sectoral diversification with nine operational facilities spread across India. Acuité believes the favourable operating environment on account of increasing compliance around waste management and disposal, wide presence of the GGG and long track record of operations will strengthen the business risk profile over the medium term. Stable operating performance The group recorded a stable revenue from operations of Rs.380.96 Cr. in FY25 (Rs.377.01 Cr. in FY24). While the volumes for waste management increased, the stagnant revenue was majorly on account of lower realizations. However, The EBITDA margins increased to 26.88% in FY25 as against 25.37% in FY24, on back of decrease in the operating cost. Further, nearly 95% of the operating income is from collecting the waste generated by the industries and a small portion from converting the waste to fuel which is supplied to cement manufacturing companies. The same is expected to improve owing to the restrictions being imposed on cement industry towards coal consumption. Additionally, GGG signs long term contracts with its customers and has minimum volume commitment with annual price escalation clause and periodic revision in transportation cost in line with changing market prices. This ensures revenue visibility over the medium term. Further, the PAT margins remained in line and stood at 16.15% in FY25 as against 16.78% in FY24 backed by significant receipt of other income from advances given to group companies. Healthy financial risk profile with comfortable debt protection metrics The financial risk profile of the group improved in FY25 marked by improvement in networth, reduction in outstanding debt and comfortable debt protection metrics. The tangible networth of the group stood high at Rs.559.51 Cr. on 31st March, 2025 improved from Rs.511.74 Cr. in FY24, majorly on account of accretion of profits to reserves. The total debt of the group reduced and stood at Rs.234.26 Cr. in FY25 as against Rs.330.83 Cr. in FY24 owing to repayment & prepayment through internal accruals & recovery of loans and advance from group companies. Furthermore, the group has also paid off additional debt of ~Rs.170 Cr. in H1FY26. Therefore, on account of reducing debt and improving net worth, the gearing lowered to 0.42 times as on 31st March, 2025 as against 0.65 times as on 31st March, 2024. The debt protection metrics also stood healthy with interest coverage ratio of 6.06 times & debt service coverage ratio at 1.35 times in FY25 as against 7.02 times & 0.76 times in FY24 respectively. Acuité believes that the financial risk profile of GGG is expected to remain healthy on account of steady margins and conservative financial policy. |
| Weaknesses |
| Project execution & implementation risk
WWEPL and SUCOI are developing a recycling facility with CETP and ZLD to cater the weavers and is complemented by installing common pipeline network infrastructure system. The group recently availed a COD extension from November 2025 to partial commencement (15 MLD) in December 2025 and balance by August 2026. The delay in the completion of the project was due to unfavorable weather conditions in the region. The total project cost for the WWEPL is marked at Rs.143.34 crore and for SUCOI is Rs.130.35 crores of which Rs.93.44 crores and Rs.34.42 crores have been incurred respectively till September 2025. The projects are currently funded by promoters’ contribution and disbursement of term loan availed by the group. The group is expected to receive around ~Rs.93 crores of total subsidies from central as well as state Government for the said projects, of which Rs.25.31 crores have been received till end of September 2025. Acuite believes timely completion of the project and achieving COD will be a key rating sensitivity for the group. Sizeable investment in group companies While the total loans and advances have decreased to Rs. 93.78 crores as on March 31, 2025 as against Rs.146.89 Cr. as on March 31, 2024 (Rs.336.53 Cr. as on March 31, 2023), the advances given to other group companies of the Luthra Group to support their business operations, diversification and scalability remains moderate (15% of net worth as on March 31, 2025). Strict government regulations and susceptibility of GCV to waste quality Waste management industry is subject to strict government regulations laid under the state and central pollution control board. Any change in regulations could negatively affect the industry and the performance of the group. Further, non-adherence to the same could result into levy of penalties, license cancellation and also plant shutdown. Additionally, revenue rates have an indirect relationship with GCV generated from waste processing. Therefore, any degradation in waste quality including moisture and dust especially in monsoon and winter season which creates issues in absorption of the heat may affect the operating performance of the group. |
| Rating Sensitivities |
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| Liquidity Position |
| Strong |
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The liquidity position of the group remains strong on account of sufficient net cash accruals against matured debt obligations. The net cash accruals of the group stood at Rs. 87.87 Cr. against matured debt obligations of Rs. 57.69 Cr. during the same period. The average bank limit utilisation for the group remained low at 8.14% in the last 6 months ended September 2025. Also, the group maintained a healthy cash balance of Rs.120.29 Cr. as on 31st March 2025.
Acuité believes that the liquidity position of the group will continue to remain adequate on account of adequate cash accruals against matured debt obligations over the medium term. |
| Outlook : Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 380.96 | 377.01 |
| PAT | Rs. Cr. | 61.51 | 63.27 |
| PAT Margin | (%) | 16.15 | 16.78 |
| Total Debt/Tangible Net Worth | Times | 0.42 | 0.65 |
| PBDIT/Interest | Times | 6.06 | 7.02 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm |
| Note on complexity levels of the rated instrument |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||
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