Canada Pension Plan Investment Board (CPPIB), the country’s largest pension fund manager, is exploring opportunities in the financial services, telecoms and logistics space in India as it looks to expand its bets in the South Asian economy, CPPIB Asia Pacific head Suyi Kim said on Wednesday.
CPPIB, which has already poured over C$4 billion ($3 billion) into real estate and other investments in the country, will expand its eight-member team in India in a measured manner, as it looks boost the share of emerging markets in its overall portfolio, Kim told Reuters.
The roughly C$300 billion ($221 billion) fund currently has about 10 percent of its portfolio invested in emerging markets and is looking to boost that to about 15 percent over the next three to five years, she said.”Globally, we’ve invested in a number of insurance companies and we’ll over time hopefully look at that in India market too,” said Kim, adding that CPPIB was also scouting for opportunities in the country’s non-banking financial arena that is fast expanding.
Last month, CPPIB raised its stake in Kotak Mahindra Bank , India’s No. 4 private sector lender by assets, by acquiring another 1.5 percent along with peer Caisse de depot et placement du Quebec (CDPQ) for 22.55 billion rupees ($352 million). As of end-March, it owned 6.3 percent of the lender.
“We’ll continue to look at further opportunities,” said Kim, responding to a query about whether CPPIB would look to boost its stake in the bank further, although she noted that Indian regulations would currently cap them at a 10 percent level.
CPPIB and private equity giant KKR & Co also agreed last month to buy a 10.3 percent stake in mobile masts operator Bharti Infratel for 61.9 billion rupees. Kim said CPPIB would look at more such investments in the country’s telecoms sector.