Temasek strengthens bets on family businesses in India

SINGAPORE: Singapore’s state investor Temasek is betting on Indian family-run businesses. This mirrors a larger trend of global capital backing family businesses that run multigenerational companies.

Such firms have built deep community roots and loyal customers. This translates to brand equity and emotional resonance. It also makes them uniquely positioned to tap into the opportunities that India’s rising middle class creates.

In March 2025, Temasek bought a stake in Indian packaged foods company Haldiram. Started by the Agarwal family, which operates in the industry, the company was valued at S$10 billion.

Temasek’s India investments are themed around building a strong, future-oriented portfolio. This means backing companies that benefit from the growing middle class and consumer demand in India, digitalisation across various sectors; and sustainable living.

The investment environment looks promising. Currently, India makes up 5% of Temasek’s portfolio. It plans to invest up to US$10 billion in India over the next three years, adding to its existing US$50 billion investment.

Temasek’s portfolio in India has increased by 35%, adding US$13 billion in value. The firm sees great potential in a market marked by steady growth and increasing sophistication.

In a media interaction, Ravi Lambah, who heads Temasek’s India operations and its strategic initiatives, notes: “The market is getting bigger, so we need to focus.” Key sectors such as consumption, financial services, healthcare, sustainability, and industrials are part of where the investment firm is looking at developments.

Recent investments demonstrate this strategic shift. Apart from its stake in Haldiram’s, Temasek raised its stake in Manipal Hospitals to 59% in a US$2 billion deal. It then sold minority stakes to Novo Holdings and Mubadala while keeping majority control.

Other consumer bets by Temasek include stakes in eyewear firm Lenskart, online food platform Rebel Foods, as well as a stake in Schneider Electric India. It’s also backed SarvaGram, a rural fintech and productivity platform for underserved households.

Family businesses attract investors because of their stability and long-term vision. “When we partner with families, they have longevity of capital,” Lambah explains.

As India’s economy grows, global investors like Temasek are positioning themselves to take advantage of its vast potential. Family businesses, once considered traditional, are now leading this new wave of investment.

India is poised to become the world’s third-largest economy by 2030. Nominal GDP is predicted to reach US$7.3 trillion, surpassing Germany and Japan. With a growth of 6.2-6.7% annually from 2025, driven by domestic consumption, structural reforms, and a youthful workforce, a. resurgent India is also expected to benefit Singapore.

Singapore is a top FDI source for India, with US$159 billion invested in India since 2000. The city-state saw bilateral trade with India valued at US$35.6 billion in 2022-23. This is set to expand, with India targeting $1 trillion in merchandise exports by 2030.