Temasek Holdings Pte is refining its investment strategy in India, signalling a shift towards larger, more concentrated bets as it seeks to optimise returns on its expanding US$50 billion (RM212.7 billion) local portfolio. The Singapore-based sovereign wealth fund, a long-term investor in India, is adjusting its approach in response to improving market conditions and greater ease in exiting positions.
“The market is getting bigger and bigger, so we need to concentrate,” said Ravi Lambah, head of India operations and strategic initiatives at Temasek. The fund, which has been investing in India for over two decades, recorded a US$13 billion or 35 percent increase in its Indian portfolio this year, driven by capital appreciation and fresh investments.
India’s predictable regulatory environment, robust economic growth and strong stock market performance have attracted billions in capital from sovereign wealth and pension funds globally. With the country now the world’s most populous nation and home to a US$5 trillion stock market, international investors have increasingly realised substantial returns.
Temasek, which holds a major stake in Bharti Airtel through its affiliate Singapore Telecommunications, is now zeroing in on a few focused themes in a market it considers a top performer over the past decade. Lambah highlighted areas such as consumption, financial services, healthcare, sustainability, transportation and industrials as key investment opportunities. He noted that India’s market now has the scale and liquidity to accommodate billion-dollar equity purchases without major price disruptions.
In a move aligned with its long-term outlook, Temasek is also seeking deeper collaborations with India’s family-run enterprises. “When we partner with families, they have longevity of capital,” said Lambah. As Temasek’s funds do not operate on a fixed life cycle, this alignment of investment horizons presents a strategic fit.
Recent activity reflects this approach. In March, Temasek acquired a minority stake in Haldiram Snacks Food Pvt Ltd. Its portfolio company Manipal Hospitals also expanded with the acquisition of Sahyadri Hospitals in Western India. Additionally, Temasek-backed Dr Agarwal’s Health Care, a prominent eye care chain, made its market debut in January.
Retail participation has surged in India’s equity markets, with inflows into mutual funds reaching a record 272.7 billion rupees last month through systematic investment plans. A strong and liquid market landscape enhances Temasek’s confidence in timely and efficient exits.
“When we want to exit, the market will give us opportunity,” Lambah affirmed.
-Bloomberg
