Temasek scouts for opportunities in healthcare, retail and tech firms

Singapore-based Temasek Fund is looking to invest in Indian consumer retail, healthcare and technology companies after it invested $2 billion in Manipal Health Enterprises to increase its stake to 59 percent.

Since 2004, we have invested an average of $1 billion annually in India across the technology, telecom and consumer retail sectors. “We are long-term investors and are exploring opportunities in many sectors,” said Vishesh Shrivastav, Managing Director Investments (India) at Temasek.

While every investment made in India has to compete for capital with projects around the world in the fund, Shrivastav said India offers favorable demographics, ambitious residents and a high class of entrepreneurs. “Stable policies and good infrastructure is another big positive for India,” he said. “We are sector-neutral and invest in four general themes such as the future of consumption, digitization, sustainable living and a longer life,” he said.

The fund is invested in Tata Play, satellite broadcaster, Zomato, food delivery app, Ola Electric and Intas pharma. The fund has also invested in Ascendus – which is building new warehouses across India.

On April 18, Temasek signed definitive agreements to acquire an additional 41 percent stake in Manipal Hospital apart from an 18 percent holding via Sheares Healthcare Group, a wholly owned subsidiary of Temasek. Manipal promoters will own about 30 percent of MHE. TPG Global Fund will own an 11 percent stake in MHE, through its new Asian fund – TPG Asia VIII while the National Investment and Infrastructure Fund (NIIF) will divest its stake in MHE.

Srivastav said investing in healthcare is part of its strategy to invest in healthcare, pharmaceuticals and diagnostics sectors. “We would like to conclude more deals in this area as we see better returns in the future,” he said.

“We are very satisfied with the returns from India and have had steady exits over the years.”

The fund is also bullish on the renewable energy sector as investee company O2 Power is building 3 gigawatts of renewable energy projects.

Temasek Investments India

The Future of Consumer: Godrej Consumer Products, Crompton Greaves Consumer Electricals, Devyani International

Digitization: Zomato, Tata Play, Healthcart

Sustainable Living: DeHaat, Ola Electric, O2 Power

Longest Life: Manipal Health Companies, Intas Pharmaceuticals, Integrace