Temasek eyes Indian family firms after $10b Haldiram’s deal

Temasek, Singapore’s state investor, intends to boost its investments in Indian family-run businesses, according to a senior official on July 14, 2025.

This announcement follows its US$1 billion investment in March 2025 for a 10% stake in Haldiram’s, a well-known domestic snack company, valuing the firm at around US$10 billion.

Family-owned businesses in India are attractive to global investors due to their established legacies, strong brand recognition, and loyal customer bases.

Temasek has a history of investing in Indian family-owned businesses, including Manipal Hospitals and Dr. Agarwal’s Health Care.

The company has committed to investing up to US$10 billion in India over the next three years.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Family businesses drive India’s economy despite succession challenges

Family-owned businesses (FOBs) contribute over 75% of India’s GDP, with projections showing this could increase to 80-85% by 2047 1.

These enterprises have demonstrated superior performance, with McKinsey research showing FOBs reported approximately 2.3% higher revenue growth than non-family businesses from 2017-2022 1.

Despite their economic significance, family businesses face unique challenges including succession planning difficulties, resistance to external perspectives, and pressure to hire family members over more qualified candidates 2.

Temasek’s investment in Haldiram’s, a decades-old family business that grew from a small sweet shop to a $10 billion snack empire, highlights the long-term value creation potential these businesses offer when they successfully navigate generational transitions.

The most successful family businesses in India maintain their competitive edge through five key differentiators: operational distinctiveness, effective generational transitions, portfolio diversification, talent development, and robust governance structures 1.

2️⃣ Temasek’s India investment strategy shows increasing confidence in emerging markets

Temasek has maintained an average annual investment of $1 billion in India over the past five years, demonstrating consistent commitment to the market 3.

This accelerated recently with over $3 billion invested in just the past year, signaling increasing confidence in India’s economic trajectory despite global uncertainties.