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Temasek Holdings probably had its most active investment phase in India, making $1 billion of investments in the quarter ending June, including Sun Pharma, Glenmark, Crompton Greaves and Oberoi Realty.
This is in sharp contrast to the $1 billion invested in the whole of FY15 with 10 transactions, including Global Health, owner of the Medanta franchise of multi-speciality hospitals and Intas Pharmaceuticals.
It also made investments in Snapdeal and data analytics company Manthan.
Singapore-based Temasek started investing outside its home country only in 2002-03. It does not want to be called a fund as it does not raise money from outside but has its own balance sheet and pays taxes like a company. It makes investments through its own divestments or earning through dividends. "When we started investing outside Singapore, we played for economic growth. So, first we went to China and then gradually moved to India," says Ravi Lambah, co-head for India, Africa and West Asia. "Initially, we did not have enough resources, so we started with banks, as they are seen as proxy for economic growth."
In India, it became more active by doubling its team to 22 investment professionals together at its Mumbai and Chennai offices about three years ago. "With those people on the ground, we were able to evaluate directly and invest more into the underlying sectors," says Lambah. One of these new resources at Temasek includes veteran investment banker Promeet Ghosh who left DSP Merrill Lynch after an 18-year stint to join Temasek as managing director.
Temasek started building the theme around consumption by investing in the telecom, health care, financial services, fast-moving consumer goods (FMCG), agri-input and e-commerce sectors.
"About 50 per cent of India's GDP is estimated to come from consumption but we do not see it necessarily from a particular lens," says Ghosh, who has been instrumental in the recent intense investment activity of Temasek in India. "While FMCG companies are driven by consumption, so are cement or housing companies or even ports which grow with imports."
Temasek's portfolio includes Godrej Consumer Products, Bajaj Corp, ACC, Oberoi Realty and Adani Ports.
The investment company had the S$266 (US$ 197) billion net portfolio in 2014-15, with a top three investment exposure to Singapore (28 per cent), China (27 per cent) and Australia (9 per cent). India now accounts for four per cent of its portfolio, which is S$10.6 ($ 7.86) billion.
