Antony Waste Handling Cell Limited announced the incorporation of a new Special Purpose Vehicle through its subsidiary to execute waste management projects awarded by Brihanmumbai Municipal Corporation. The development represents a strategic expansion in the company's municipal waste management operations.

Subsidiary Incorporation Details

AG Enviro Infra Projects Private Limited, a material wholly owned subsidiary of Antony Waste, incorporated Mumbai Eco Solutions Private Limited on December 30, 2025. The new entity was established specifically to undertake two Collection and Transportation projects recently awarded by Brihanmumbai Municipal Corporation.

Investment Structure and Shareholding

The incorporation involved a cash consideration of ₹51,000.00, with AG Enviro subscribing to the Memorandum of Association and Articles of Association of Mumbai Eco Solutions. The subsidiary acquired 5,100 equity shares in the newly formed entity.

Project Background and Purpose

Mumbai Eco Solutions was established as a Special Purpose Vehicle to handle the operational requirements of the awarded municipal projects. The entity will focus on solid waste management services, specifically collection and transportation operations for Brihanmumbai Municipal Corporation. No governmental or regulatory approvals were required for the incorporation process.

Regulatory Compliance

The company disclosed the incorporation under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations 2015. The announcement follows the company's previous communication dated December 17, 2025, and complies with SEBI Master Circular requirements issued in November and December 2024.

This strategic move strengthens Antony Waste's position in municipal waste management operations while creating a dedicated vehicle for executing the BMC projects efficiently.

As Mumbai prepares for its long-delayed civic elections, Antony Waste Handling Cell Ltd has bucked the trend of municipal contract uncertainties by securing significant new agreements with the Brihanmumbai Municipal Corporation (BMC). The company has expanded its operational footprint from two wards to seven wards across two zones, marking a substantial growth in its municipal waste management portfolio.

Major Contract Expansion

Antony Waste Handling Cell has secured seven-year contracts with an execution value of approximately ₹1,300.00 crore. These agreements place comprehensive responsibility for vehicles, manpower, and maintenance operations with the company.

NG Iyer, Chief Financial Officer at Antony Waste, confirmed the contracts are already signed and backed by letters of acceptance. "These contracts are already signed and backed by letters of acceptance. They are in the bank," Iyer stated, emphasizing that elections do not impact already awarded contracts.

Operational Imperatives Drive Continuity

Unlike other municipal-linked businesses that typically experience slowdowns during election periods, solid waste management operations face different pressures. Mumbai generates approximately 6,200.00 tonnes of waste daily, leaving minimal room for administrative delays. This operational reality, combined with judicial scrutiny from the Bombay High Court regarding pollution and odour issues, ensures continued momentum in waste management decisions.

While incremental projects such as biomethanation and waste-to-energy initiatives may experience short delays during standing committee reconstitution, Iyer expects normal operations to resume within months. The company has implemented interim odour-control measures, though these are acknowledged as temporary solutions.

Revenue Diversification Strategy

Antony Waste is actively working to rebalance its revenue composition beyond traditional municipal contracts. Currently, non-municipal income represents 10.00-12.00% of total revenue, but the company targets increasing this proportion to 15.00-20.00% over the next three to four years.

Refuse-derived fuel (RDF) has emerged as a particularly successful diversification area. The company now sells nearly 144,000.00 tonnes annually to cement manufacturers, representing a significant increase from approximately 22,000.00 tonnes previously. This growth provides both a steady waste outlet and a lower-carbon fuel alternative for industrial users.

Future Expansion Plans

The company is exploring additional recycling segments including tyres and end-of-life vehicles, with plans to phase in these operations over the coming years. The expansion requires relatively modest capital expenditure of ₹50.00-70.00 crore, reflecting the company's measured approach to growth.

Capital allocation remains conservative, with cash deployment focused primarily on existing waste-to-energy projects, including facilities in Kurnool and Kadapa. Management maintains a sustainable dividend policy rather than pursuing aggressive distribution strategies.

Financial Outlook

Antony Waste expects stable margin performance across its operations. Core waste management activities are projected to deliver EBITDA margins of 22.00-23.00%, while newer ventures are expected to operate within an 18.00-25.00% range initially. The blended margin is anticipated to remain in the low-20s percentage range, reflecting the company's balanced operational approach.