Karnataka Compost Development Corporation Limited (KCDC) is one of the oldest public entities involved in the production of compost from municipal solid waste (MSW) for agricultural purposes in India. The business of compost production provides significant value to KCDC by offering viable options for cost recovery and ensuring sustainable sanitation services provision. KCDC has been particularly successful by using an innovative business partnership model. Its strategic partnerships with other local government entities and private enterprises have allowed it to optimize the allocation of resources and activities reduce risk associated with high capital investments and establish an assured market for their product. Another important success driver has been KCDC’s ability to mold its business to local context elements. The use of a simple and labor-intensive technology not only gives KCDC a competitive advantage for production, but also generates employment particularly for low-income persons who would otherwise be unemployed. An additional socio-economic benefit from KCDC’s businesses the reduction in chemical fertilizer imports from increased usage of organic compost. This in turn has significant ecological benefits, reducing residual chemical pollutants in soils and water bodies.