Singapore’s state investor Temasek is seeking to increase its investments in Indian family-run businesses, according to Vishesh Shrivastav, managing director of Temasek’s India investment team. This comes after Temasek invested $1 billion in Haldiram’s, a popular domestic snacks company, in March. Family businesses in India have become attractive to global investors due to their strong domestic brands, loyal customers, and multigenerational legacies.
Temasek has previously invested in several Indian businesses that were once family-run, including Manipal Hospitals and Dr Agarwal’s Health Care. The company is keen to partner with more family-owned businesses to drive long-term value creation. In April 2023, Temasek spent $2 billion to increase its stake in Manipal Hospitals to 59% from 18%, and later sold a minority stake to other investors while retaining majority control.
Shrivastav described Manipal Hospitals as “an eminently listable company,” but did not elaborate on plans for a potential public offering. India remains Temasek’s best-performing market over the last decade, driven by the country’s rapid economic growth and large IPO market. Temasek has invested over $3 billion in India in the past year and aims to invest up to $10 billion in the country over the next three years.
Temasek’s interest in Indian family-run businesses is part of a broader trend of global investors seeking to tap into the country’s growing consumer sector. With its strong brands and loyal customer base, India’s family-run businesses offer attractive opportunities for investors seeking long-term growth and returns. As the Indian economy continues to grow, it is likely that Temasek and other global investors will increase their investments in the country’s family-run businesses.
Temasek’s investment strategy in India is focused on partnering with family-owned businesses to drive long-term value creation. The company is looking to invest across the value chain, from early-stage startups to established companies. With its significant resources and investment expertise, Temasek is well-positioned to help Indian family-run businesses expand and grow, both domestically and internationally. As the Indian economy continues to evolve, it is likely that Temasek and other global investors will play an increasingly important role in shaping the country’s business landscape.