Singapore firms betting on India

Firms looking at telecom, IT, port and banking

With the Indian economy on a roll and a Comprehensive Economic Co-operation Agreement on the anvil, a clutch of Singapore companies are looking at investment opportunities in India in sectors ranging from telecommunications and IT to ports and banking.

Speaking at "India Unlimited", an ICICI Securities conference in Singapore on Monday, Ho Ching, chairman of Temasek Holdings, said the government investment vehicle was exploring opportunities in sectors including telecom, while others like PSA were interested in Indian ports, DBS in banking, and Singapore Technologies in telecom companies. Similarly, CapitaLand, with interests in real estate internationally, was eyeing the Indian market.

"Singtel's investment in India with Bharti would not preclude Temasek or other Temasek-linked companies from participating in India perhaps with different telecom partners. The concept from a Temasek portfolio perspective is to increase or broaden our exposure to an attractive sector, directly or indirectly. Clearly, we will ensure that the commercial confidence is preserved between competing entities, if we have direct stakes," Ho said.

She added that Tamasek, which recently acquired a 7 per cent stake in ICICI Bank and manages a $100 million Merlion India Fund with Standard Chartered Private Equity, could invest in Indian ventures either directly or co-invest with non-Indian companies or alternatively co-invest with Indian companies into third countries.

"These (co-investment with non-Indian companies) may include our investee companies in Singapore or from other parts of the world, such as Quintiles of USA, or funds such as the Merlion Fund. We will consider the merits of such opportunities independently of our investee companies. We may also co-invest with other third parties into India," said Ho, who is the wife of Singapore Deputy Prime Minister Lee Hsien Loong.

The Tamasek chief also said as part of the India-Singapore CECA, companies from the two countries can increase their partnership in the financial services arena.

The Singapore Exchange (SGX) has already held exploratory discussions Indian bourses on the possibility of working out some listing arrangement for Indian and Singapore companies.

Ho said the recent relaxation of India's external commercial borrowings SGClimits will open up opportunities for more Indian corporations to tap the Singapore debt market.

In addition, synergies on fund management were in the offing with over 200 international fund management and private equity firms, which have operations in Singapore, evincing interest in India.

"The strong economic growth in India has led to greater accumulation of individual wealth and corporate cash flows. With the continuing liberalisation on offshore investments, Indian investors seeking greater diversification or growth opportunities for their investments, could tap on the reach and expertise of these Singapore-based asset management firms," she said.