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【Temasek's Bold $10 Billion Investment in India: A Strategic Move Amid China Slowdown】 In a significant shift highlighting India's burgeoning appeal on the global investment stage, Singapore’s sovereign wealth fund, Temasek Holdings, has unveiled plans to invest $10 billion in India over the next three years. This substantial investment coincides with a period of underperformance in Chinese markets, underscoring India's emerging status as a critical market for Temasek, ranking alongside the United States as one of its top two preferred destinations for investment. Temasek's commitment to India is not new. Over the past two decades, the firm has invested approximately $37 billion in the country. As of 2023, India constitutes 7% of Temasek’s global portfolio by underlying assets, a notable increase from 4% in 2020. In 2023 alone, Temasek invested a record $3 billion in India. Temasek’s strategy is driven by a keen understanding of India's unique market dynamics: "India has always commanded a premium due to its growth potential. By identifying and investing in the right businesses, we have consistently achieved returns that justify the higher valuations." "The capital markets and deal sizes in India have been steadily increasing, thanks to the expanding and maturing financial markets. The current high valuations are justified by the potential for above-average returns." Temasek’s investment strategy in India is centered on several critical sectors, including technology, financial services, healthcare, and consumer goods. A prime example of this is their healthcare investments. Case Study: Manipal Health Enterprises Temasek’s healthcare portfolio, Sheares Healthcare Group, recently invested nearly $2 billion in Manipal Health Enterprises Pvt. Ltd., a leading multi-speciality hospital operator in India. This investment secured a 59% stake (an additional 41%) at a valuation of $4.9 billion. The valuation is supported by Manipal’s strong financial performance: 1. Revenue of approximately $488 million. 2. An EBITDA margin of 24% for FY 2023. 3. Millions of patients as loyal customers. 4. Significant potential for free cash flow generation. Following this investment, Temasek sold an 8% stake to Abu Dhabi’s sovereign wealth fund, Mubadala, while retaining a majority share. This move underscores the successful and foresightful nature of their investment strategy. Temasek’s increasing investment in India reaffirms the country's status as a pivotal destination for global investors. As someone closely monitoring these developments, it's evident that India’s market offers tremendous opportunities. Temasek’s commitment only strengthens this outlook, marking India as a strategic hub for future investments.

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