With eye on bets worth $10 billion, Temasek's board of directors land in India for key visit

In April, Temasek sealed the biggest ever private equity deal in the Indian healthcare sector - the acquisition of a majority stake in Dr Ranjan Pai-led Manipal Hospitals for more than $2 billion.

The 11-member board of directors of Temasek has embarked on a high-profile visit to India, the global bright spot, as the Singapore investment giant looks to deepen ties and accelerate plans to deploy $10 billion in the country over the next three years, multiple industry sources in the know told Moneycontrol.

The firm which has invested an average of $1-$1.5 billion annually in India over the last 19 years now aims to triple that number as foreign investors pivot to India which continues to outperform global peers.

The Temasek top brass visit comes in the backdrop of domestic stock markets hitting record highs, state election results indicating policy continuity and strong Q2 GDP growth numbers firmly positioning India as the fastest-growing major economy.

" The entire Temasek board is on a 4-day trip to India and will spend time in Delhi and Mumbai this week. Meetings with industrialists, corporations and senior government officials are on the agenda," said one of the persons cited above.

Lim Boon Heng has been the Chairman of the Board of Directors of Temasek since August 2013. Dilhan Pillay Sandrasegara is the CEO, a post he assumed in October 2021. Ravi Lambah who joined Temasek in April 2012 is the Head of India.

According to a second person familiar with the trip, "Temasek has done some large deals here in recent times. India is important for them and being on the ground matters. Interactions with portfolio companies have been planned who will make presentations "

In April, Temasek sealed the biggest-ever private equity deal in the Indian healthcare sector - the acquisition of a majority stake in Ranjan Pai-led Manipal Hospitals for more than $2 billion.

" India is the flavour of the season and it is a good idea to expose the entire board to local entrepreneurs and management teams. The board had made a similar visit around 5-6 years back," a third person told Moneycontrol.

All three persons above spoke to Moneycontrol on the condition of anonymity.

When contacted via phone, a Temasek spokesperson declined to comment.

TEMASEK BETTING BIG ON INDIA

On July 18, 2023, in an interview with Moneycontrol, Temasek India senior executives Vishesh Shrivastav and Mohit Bhandari told Moneycontrol that the firm which had a net portfolio value of $287 billion as of March 31 2023, has set aside $10 bn for India investments over the next three years as it bets on stable government policy, attractive demographics and high-quality entrepreneurs.

Also Read: MC Interview: Temasek's mega India plan to pump in up to $10 bn over three years

Elaborating on opportunities in the healthcare sector post the landmark Manipal deal, Temasek India spearhead Ravi Lambah told Moneycontrol  "Amid global headwinds, as investors remain disciplined on valuation, growth prospects in the sector make it a favourable destination for capital. We see an opportunity for strategic consolidation where strong management can drive synergies for long-term value creation."

Also Read: MC Interview: Temasek’s Ravi Lambah on its healthcare ambition after Manipal acquisition

In India, Temasek has invested in the likes of Ola, Zomato, Dr Agarwal's Healthcare, Medica Superspeciality Hospital, Atomberg, UpGrad, HDFC Life, ICICI Prudential Life, Integrace, Curefit and others.

Senior executives of other top global funds have also visited India earlier this year and expressed optimism about the investment climate

"The fundamentals for long-term growth in India are outstanding. For us in India, the best is yet to come..we control $50bn of assets here," said Jonathan Gray, President of the world's biggest alternative asset manager, Blackstone during an interaction in February.

In April, Joseph Bae, who joined KKR as an analyst in 1996 and rose to become the Co-CEO of the US private equity giant said the firm is betting on healthcare, consumer, and tech and tech-enabled segments as the top three sectors of focus for India.

Also Read: 'Fundamentals for long-term growth in India are outstanding': Blackstone's Jonathan Gray