Singapore’s Government Investment Corporation (GIC) and the sovereign wealth fund, Temasek Holdings, have long had faith in India’s economy but the city state’s Chinese-family-based businesses have yet to make an impact in the mega Indian market.
Temasek is rated among the top investors in India but the emerging South Asian market is keen to welcome the private sector which is dominated by Singaporean Chinese business with strong links to the South East Asia and the Far East markets.
“Historically, the Chinese family-owned businesses in Singapore have not found it easy to understand India’s financial rules and regulations and this perception needs to change,” Leo Puri, managing director of UTI Asset Management Company, said in his address at the CEO Roundtable on Manufacturing Opportunities in ‘New’ India, held August 24, 2015 in Singapore.
Puri pointed out that the Singapore Chinese corporations seem to be shy of doing business in India. Experts say that these companies should draw an inspiration from their state-run counterparts, and lead the small and medium enterprises to set up operations there.
GIC’s deal is around US$300 million investment in a new joint venture with Indian real estate developer DLF to build two projects in Delhi.
GIC will invest in the central Delhi projects which are being built by DLF Home Developers, a subsidiary of India’s biggest property group.
Expressing confidence in India’s long-term growth potential, Loh Wai Keong, managing director and co-head Asia at GIC Real Estate, said: “We hope to leverage our mutual strengths to grow this partnership with DLF and to collaborate on more projects in the future.
“Globally, we have successfully nurtured long-term partnerships with strong and well-established developers across our key markets, and we hope to do the same with DLF in India,” he said on signing a partnership with DLF on September 2, 2015.
The deal is one of several by GIC in India this year, after its investments in Bandhan Financial Services, which is setting up one of the country’s two newest banks, and online taxi-hailing company Ola.
Likewise, Temasek has invested US$1 billion in India in the second quarter of this year, including investments in assets such as Sun Pharma, Glenmark, Crompton Greaves and Oberoi Realty.
In 2014-15, Temasek invested a total of US$1 billion over 10 transactions in Indian companies, according to stock markets data. These include investments in Global Health, Intas Pharmaceuticals, Snapdeal and data analytics firm Manthan. Other India-based assets in Temasek’s portfolio include, Godrej Consumer Products, Bajaj Corp, ACC and Adani Ports.
India currently accounts for four per cent of the Temasek portfolio, valued at US$7.86 billion out of a total global exposure of around US$197 billion, according to official data.
Apart from GIC and Temasek investments, Puri urged the Singaporean Chinese to take into consideration the multi-billion dollars of investment committed in India by major corporations from China and Taiwan.
Puri stressed on the need to clear all cultural misunderstanding so that there is a growing confidence among Singaporean Chinese businessmen in the Indian market.
Companies from China are not only very visible in India but are also actively participating and investing in the telecommunications and electronics as well as infrastructure sectors, he said while assuring Singaporean businessmen about the authenticity of the Indian growth story.
The communist trading giant’s exports to India surged by 10.8 per cent to US$27.29 billion during the first half of this year.
Bilateral trade between India and Taiwan stood at US$6 billion in 2014 and over 70 Taiwanese companies have invested in India since 2013.
Puri underlined the importance of now having large Singaporean Chinese family-owned businesses to succeed in India.
Someone has to take the lead. “We need a champion from the Singaporean Chinese businesses,” he said.
Puri assured all businessmen attending the roundtable that India is like other emerging market economies such as Indonesia. India’s government is carrying out pro-businesses reforms which will translate into massive investments in urban infrastructure including 100 smart cities, comprising green-field and brown-field projects requiring refurbishments, renovations and redevelopment, re-energizing the economy.
Temasek is rated among the top investors in India but the emerging South Asian market is keen to welcome the private sector which is dominated by Singaporean Chinese business with strong links to the South East Asia and the Far East markets.
“Historically, the Chinese family-owned businesses in Singapore have not found it easy to understand India’s financial rules and regulations and this perception needs to change,” Leo Puri, managing director of UTI Asset Management Company, said in his address at the CEO Roundtable on Manufacturing Opportunities in ‘New’ India, held August 24, 2015 in Singapore.
Puri pointed out that the Singapore Chinese corporations seem to be shy of doing business in India. Experts say that these companies should draw an inspiration from their state-run counterparts, and lead the small and medium enterprises to set up operations there.
GIC’s deal is around US$300 million investment in a new joint venture with Indian real estate developer DLF to build two projects in Delhi.
GIC will invest in the central Delhi projects which are being built by DLF Home Developers, a subsidiary of India’s biggest property group.
Expressing confidence in India’s long-term growth potential, Loh Wai Keong, managing director and co-head Asia at GIC Real Estate, said: “We hope to leverage our mutual strengths to grow this partnership with DLF and to collaborate on more projects in the future.
“Globally, we have successfully nurtured long-term partnerships with strong and well-established developers across our key markets, and we hope to do the same with DLF in India,” he said on signing a partnership with DLF on September 2, 2015.
The deal is one of several by GIC in India this year, after its investments in Bandhan Financial Services, which is setting up one of the country’s two newest banks, and online taxi-hailing company Ola.
Likewise, Temasek has invested US$1 billion in India in the second quarter of this year, including investments in assets such as Sun Pharma, Glenmark, Crompton Greaves and Oberoi Realty.
In 2014-15, Temasek invested a total of US$1 billion over 10 transactions in Indian companies, according to stock markets data. These include investments in Global Health, Intas Pharmaceuticals, Snapdeal and data analytics firm Manthan. Other India-based assets in Temasek’s portfolio include, Godrej Consumer Products, Bajaj Corp, ACC and Adani Ports.
India currently accounts for four per cent of the Temasek portfolio, valued at US$7.86 billion out of a total global exposure of around US$197 billion, according to official data.
Apart from GIC and Temasek investments, Puri urged the Singaporean Chinese to take into consideration the multi-billion dollars of investment committed in India by major corporations from China and Taiwan.
Puri stressed on the need to clear all cultural misunderstanding so that there is a growing confidence among Singaporean Chinese businessmen in the Indian market.
Companies from China are not only very visible in India but are also actively participating and investing in the telecommunications and electronics as well as infrastructure sectors, he said while assuring Singaporean businessmen about the authenticity of the Indian growth story.
The communist trading giant’s exports to India surged by 10.8 per cent to US$27.29 billion during the first half of this year.
Bilateral trade between India and Taiwan stood at US$6 billion in 2014 and over 70 Taiwanese companies have invested in India since 2013.
Puri underlined the importance of now having large Singaporean Chinese family-owned businesses to succeed in India.
Someone has to take the lead. “We need a champion from the Singaporean Chinese businesses,” he said.
Puri assured all businessmen attending the roundtable that India is like other emerging market economies such as Indonesia. India’s government is carrying out pro-businesses reforms which will translate into massive investments in urban infrastructure including 100 smart cities, comprising green-field and brown-field projects requiring refurbishments, renovations and redevelopment, re-energizing the economy.
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