CPP Investments Bets Big on India’s Infrastructure and Digital Future
MUMBAI – Canada Pension Plan Investment Board (CPP Investments), one of the world’s largest institutional investors, has reaffirmed its long-term commitment to India, identifying data centers, infrastructure, and real estate as the primary engines for its future growth in the region.
The pension fund, which manages assets on behalf of millions of Canadians, has seen its footprint in India surge to an all-time high. As of June 30, the firm’s net assets in India reached approximately C$33.7 billion (roughly Rs 2.25 trillion), marking a nearly 17-fold increase since the establishment of its Mumbai office in 2015.
“Ticking All the Boxes”
For CPP Investments, India represents a strategic imperative. Speaking on the firm’s investment philosophy, Manroop Jhooty, Senior Managing Director and Head of Total Fund Management, noted that India’s economic trajectory is bolstered by favorable demographics and a rapidly expanding middle class.
“When we look from the lens of a long-term investor, India has a lot of positives,” Jhooty told Mint. “It [India] ticks all the boxes when you think about long-term investing.”
Asia currently accounts for nearly 25% of the CPP Investments global portfolio, with India serving as the third-largest contributor within the region, trailing only behind other major Asian economies.
The Data Center Gold Rush
A cornerstone of the firm’s recent strategy is its heavy investment in India’s digital backbone. Recognizing that global hyperscalers are increasingly drawn to India due to its competitive total cost of ownership, the firm is aggressively expanding its presence in the data center sector.
CPP Investments recently formed a strategic partnership with CtrlS Datacenters Ltd., committing C$588 million for an 8.2% stake in the operator, alongside a C$441 million commitment to a joint venture tasked with developing hyperscale data center campuses across the country.
“There is a view emerging amongst a lot of the hyperscalers that India offers one of the lowest total costs of ownership globally,” said Hari Krishna V., Managing Director and Head of Real Estate India at CPP Investments. “While it is still early days, the momentum is real.”
Navigating the AI Frontier
While much of the global investment community is fixated on the artificial intelligence (AI) arms race, CPP Investments is maintaining a cautious, long-term perspective. Despite concerns that India may be trailing the United States and China in AI development, Jhooty emphasized that it is too soon to declare market leaders.
“It’s very early days when it comes to AI,” Jhooty remarked. “It is very difficult at this point in time to say how AI is going to develop, how it’s going to diffuse into applications, and who the winners and losers are going to be.”
To maintain exposure to the sector, the firm has committed $50 million to the global venture capital firm Accel Core, which focuses on technology sectors including AI, fintech, and security.
A Balanced Portfolio
The fund’s India strategy utilizes a mix of direct investments and private equity funds. Its extensive portfolio in the country includes holdings in major entities such as the National Stock Exchange of India Ltd., Kotak Mahindra Bank, Flipkart, and logistics developer IndoSpace.
As part of its lifecycle management, the firm has also begun to realize gains from its mature investments, recently exiting its stake in the Phoenix Mills real estate joint venture and liquidating its position in the logistics provider Delhivery.
With its capital base continuing to grow, CPP Investments appears well-positioned to capitalize on India’s infrastructure-led economic expansion, further cementing its status as a cornerstone foreign institutional investor in the nation.
