In March this year, when ICICI Bank, one of India's largest privately owned banks, invited Ho Ching, the chief executive officer of Temasek Holdings to speak at an investor conference in Singapore, one of the conference's features that attracted Ching was its theme. The  invitation said "India Unlimited". "It struck me as very appropriate as India and Indian companies stand at the threshold of unlimited potential, growth and opportunities," she said at the time.

And going by the activities and investments of Temasek - the somewhat secretive Singapore government investment company that has an estimated US$75 billion in assets - it appears that Ching is indeed India-struck. Over the past eight months, this "piggy-bank" owned by the Ministry of Finance has been investing aggressively to emerge as one the largest private equity investors in India. Moreover, its swiftness of investments has not only created a stir in India's private equity investor circles, but is also giving its rivals, as reports suggest, sleepless nights.

Take a look at Temasek's investments in India and it will be clear why it is suddenly hot. It debuted in December last year with the acquisition of a 5% stake in ICICI Bank for $200 million, which it raised to 9% in May this year for an additional $400 million. In the same month, it teamed up with Newbridge Capital Partners to pick up 7.7% in the Bangalore-based Matrix Labs, for an estimated $40 million. More recently - in August - it signed a deal with the hospital chain Apollo Hospitals for a 5% stake for about $10 million, and bought a 20% stake in ICICI One Source, the bank's business process outsourcing (BPO) arm for an estimated $30 million.

Although Temasek refused to comment on any of its Indian deals (which is why Asia Times Online had to depend on media reports to arrive at Temasek's investment numbers), analysts reckon that Temasek's direct investments (listed above) along with its indirect ones that were made through its proxy presence - like the Merlion India Fund, the Delhi-based private equity firm Actis, West Bridge Capital, Singapore Telecom's stake in Bharti Televentures, etc - could well make it the single biggest private equity investor in the country.

For Temasek though, such rankings don't appear to matter. "We don't care about the how big we are ... we are here to make money," says Manish Kejriwal of Temasek Holdings Advisors, the Indian outfit of Temasek that looks after its Indian interests. Instead, what matters more, perhaps, is the fact that in the aftermath of the Asian financial crisis of 1997, Asia is emerging as "unlimited" for Temasek, and India "is clearly very much part of the Asia growth story in the coming decade".

Ching also says that while the "Asian miracle is undoubtedly China, now is India's turn to stir, standing at an inflexion point, after 10 years of market liberalization and corporate restructuring". But before going into the details of where exactly India features in Temasek's  gameplan, and why it has opened up an office in India (in January) - the first and only office outside Singapore - despite that its Asian priority markets include China, Thailand, South Korea and Malaysia, it is important to understand why Temasek is stepping out of Singapore at all.

After all, for almost 28 years out of its 30-year existence, Temasek has been a provincial investor, investing only in Singapore-based entities. For instance, Temasek has investments in 40 of the island-state's largest corporations, including Singapore Airlines, Singapore Telecom, DBC Bank, Keppel Corporation, Singapore power, and a host of other companies in infrastructure, transport, leisure and technology sectors.

According to The Economist, the main reason for Temasek seeking opportunities outside Singapore could be that its return on investments at home is dropping - to 13% a year over the past decade from 18% earlier. For instance, quoting a study by LEK Consultancy, the Economist says that 22 major listed companies had made an average return of only 1.7% a year since their respective listings. "By contrast, GE, which does not receive the same favorable treatment from a friendly government, managed 27% a year over the same period," says The Economist.

It appears that Temasek's Asia plan starts with deepening its connection with India, as the opening of its office here indicates. "As an equity house with the mandate to maximize long-term returns on our investments, we are keen to deepen our connection with India, as 
part of our wider interest in Asia," Ching says.

Its investment strategy in India is carefully crafted out, as well. According to Ching, Temasek is open to investing directly in Indian companies, or, "we may co-invest with non-Indian companies, who are also actively looking for opportunities in India." Ching adds that Temasek may co-invest with Indian companies, in companies that have the potential to scale beyond their domestic markets to reach into Asia or into the world. "Such co-investment opportunities could include investments into the Indian parent companies, or co-investments with them into third countries," she says.

Temasek says that because it is not a fund, there is no pressure to book profits in a hurry. Its India strategy, then, will take "a long-term view of opportunities and investments". At the same time, Temasek could also add value to its portfolio companies by promoting a sound corporate governance framework as well as helping them "to build sustainable value and be globally competitive".

Having already pumped in an estimated $680 million in India over the past few months, Temasek has indeed emerged as a significant foreign direct investor in the country. But these may be just for starters. "The fact that Temasek maintains an office in India itself signifies 
that its future plans are big," says Kejriwal. And although he is not willing to put any figures just yet on what he has up his sleeves, media reports and industry sources suggest that deals worth over $1 billion are brewing already.

Ching agrees that "Temasek looks forward to the opportunities to invest in India and with India". And her gameplan here is not just to make money but "also to participate in and contribute to the growth and success of India's economy as a long-term partner".

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