Given the expanding prospects it sees in the world’s fifth largest economy, Singapore-based Temasek Holdings aims to increase its India portfolio by an additional $9 to $10 billion over the next three years, doubling or perhaps tripling its India portion in the global portfolio.
India now makes up 6% of the $287 billion entire portfolio of the global investment corporation, up from 5% last year and 3% five years ago, with a contribution of $17 billion. According to the potential we are seeing, we believe we can double or triple this in the following three years. According to Vishesh Shrivastav, Managing Director, Investment (India) at Temasek, “we could do $9-10 billion in three years from today.”
The corporation has been investing $1 to 1.5 billion in India annually on average and expects this pace to pick up as more possibilities arise. In keeping with its investment trends around digitalisation, sustainable living, consumerism, and longer life spans, it is placing bets in the healthcare, software-as-a-service, fintech firms, e-commerce, electric vehicle, and electronics manufacturing services sectors.
The investment company uses a bottom-up strategy and has been making investments in India for about 20 years. It just completed a $2 billion plus investment in Manipal Health to acquire the bulk of the company. The returns on our Indian portfolio have been excellent, and we are pleased with them, said Shrivastav. The increase in purchasing power, rising consumption levels, and rising per capita income were all reasons, he continued, why the company was optimistic about India. We are very enthusiastic about stable government policies, ease of doing business, and superior quality entrepreneurs and businesses.
surpassing market
The firm’s portfolio in India has outperformed stock market returns since April 1, 2023, which have increased by over 13% so far in FY24. According to Mohit Bhandari, MD, Investment (India), “The desire to increase partly stems from our outlook, partially from our track record, to the extent that the portfolio has done well and it inspires confidence to step up our investment meaningfully.”
Adani Ports, Lenskart, Country Delight, AU Small Finance Bank, PB Fintech, Pharmeasy, Zomato, Tata Play, and Info Edge are a few of Temasek’s largest direct investments in India. Through portfolio firms including CapitaLand, Sembcorp Industries, Singapore Airlines, and Keppel Corporation, it is also present in India.
Due to global challenges, Temasek suffered a 3% decrease in shareholder return globally in FY23, and gains on its direct investments were reversed. Although they could not give an exact number, both officials claimed that returns from India had been favourable.
Given that it is connected to consumption, digitalization, and lifespan, the company has a sizable portfolio in the financial services sector in India. It is exposed to insurance firms, banks, NBFCs, and fintech.
“Special infra”Bhandari claimed that the Indian startup ecosystem has advanced thanks to better-quality entrepreneurs and increased creativity. He praised India’s exceptional and distinctive digital infrastructure. He cited the Reserve Bank of India as an illustration of how it was able to strike a compromise between various goals by permitting First Loss Default Guarantee in digital lending.
According to Shrivastava, “the start-up economy and the internet economy not only contribute significantly to GDP today but are likely to do so in the future as well.”
