Temasek Plans $10 Billion Investment in India Over Next 3 Years.

Temasek, the Singapore investment firm, is poised to ramp up its investment in India with a planned $10 billion deployment over the next three years, building on last year's record investment of $3 billion.

Mohit Bhandari, Managing Director of Investments (India) at Temasek, highlighted the firm's commitment to expanding its presence in India, citing the country's strong economic outlook and robust entrepreneurial talent pool. India currently constitutes 7% of Temasek’s global portfolio, with its India exposure valued at $37 billion as of March 31, 2024, on a mark-to-market basis.

Bhandari emphasized that India has been Temasek's best-performing market globally over the last decade, driven by strategic investments in sectors such as financial services, healthcare, and technology consumer. The firm intends to maintain a long-term focus on these sectors, aiming to capitalize on emerging opportunities in areas like artificial intelligence and space technology.

Last fiscal year, Temasek made significant investments in companies like Lenskart and Country Delight, while also maintaining a 10% stake in Tata Play. The financial services sector remains a cornerstone of Temasek’s portfolio in India, encompassing approximately 20 companies including the National Stock Exchange. In healthcare, Temasek seeks to expand its footprint, particularly in medical equipment and pure-play drug manufacturers.

Addressing rich valuations in certain segments of the Indian economy, Bhandari emphasized the firm's focus on balancing returns with deployment strategies. He noted that while opportunities abound, maintaining robust returns remains paramount.

Temasek’s recent $2 billion investment in Manipal Hospitals underscores its strategy to engage in larger transactions within India's deepening market landscape. Bhandari expressed optimism about the growing appetite among Indian promoters to partner with financial investors, further enhancing Temasek’s investment prospects in the country.

HBL