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

Ravi Lambah, head of India and strategic initiatives at Temasek, Singapore’s sovereign wealth fund, announced plans to invest $10 billion in India over the next three years. This strategic move aims to increase Temasek's total exposure in India to $47 billion.

“Our total mark-to-market India exposure, including our indirect exposure in Airtel through Singtel, is $37 billion as of March end. We see the potential to deploy an additional $10 billion in the next three years, subject to finding the right opportunities,” Lambah stated to Business Standard on Monday. He noted that this projection excludes investments by Temasek’s subsidiaries, which are also active in India.

Temasek has been actively investing in India for two decades, navigating various market cycles and developing a deep understanding of the market dynamics. Lambah highlighted that India currently represents 7% of Temasek's global portfolio by underlying assets, up from 4% in 2020, and has been the fund’s best-performing market globally over the last decade.

Lambah emphasized Temasek's strategic investment themes, focusing on increasing lifespan through healthcare, consumption, digitization, and sustainability. He pointed out recent investments in Manipal, Medanta, Dr. Agarwal, and Zomato, the latter of which saw Temasek’s early $100 million investment now valued significantly higher.

While Temasek has not yet participated in the Indian government’s privatization initiatives, Lambah indicated openness to explore such opportunities if they align with Temasek’s investment criteria. He noted Singapore Airlines' stake acquisition in Air India as an example of Temasek’s broader participation in India’s economic landscape.

Financial services constitute nearly half of Temasek’s portfolio in India, including holdings in HDFC Bank, Axis Bank, and ICICI Bank. Lambah underscored Temasek’s long-term investment approach, distinguishing it from traditional private equity cycles, and reiterated the fund’s flexibility to engage across public and private equity markets.

Regarding recent divestments, Lambah confirmed Temasek’s sale of its 10% stake in Tata Play to Tata Sons in the previous financial year. He concluded by affirming Temasek’s commitment to building a resilient portfolio in India, leveraging strategic partnerships and long-term value creation strategies amidst evolving economic trends.

BS