Prudential Mulls India Asset Unit Sale Amid Mounting Losses
Overview
US financial giant Prudential Financial is reportedly considering selling its Indian asset management arm, PGIM India Asset Management. The unit, managing roughly $3 billion in assets, has incurred significant after-tax losses exceeding ₹235 million for the fiscal year ending March 2025, prompting a strategic review. EY has been tapped to advise on the potential divestment, a move that contrasts with aggressive expansion strategies of global peers in India's growing market.
Prudential Eyes India Exit for Loss-Making Unit
US-based Prudential Financial Inc. is exploring the sale of its Indian investment management subsidiary, PGIM India Asset Management Pvt Ltd. The move comes a decade after acquiring the business from Deutsche Bank AG and follows a period of mounting financial losses and stagnant growth for the unit.
PGIM Inc., the investment arm of Prudential Financial, has reportedly engaged EY to guide the potential divestment process. Sources familiar with the matter indicated that the unit, which oversees approximately ₹266 billion ($3 billion) in assets, has seen minimal expansion in recent years. This lack of significant growth, coupled with substantial financial deficits, has triggered the consideration of a sale.
Financial Strain and Strategic Divergence
Financial disclosures reveal that PGIM India's after-tax losses climbed to over ₹235 million in the fiscal year concluding March 2025. This downturn occurred despite the appointment of a new chief executive officer in July 2025, according to local reports. The firm's strategic approach in India has notably differed from competitors like BlackRock Inc., which is aggressively investing to capitalize on the nation's expanding equity culture.
Prudential Financial, a global investment firm managing around $1.5 trillion in assets, originally purchased Deutsche Bank's India asset management business in 2015. PGIM's diverse portfolio spans fixed income, equities, alternatives, and real estate. However, the performance of its Indian subsidiary has apparently not met expectations, leading to the current strategic re-evaluation.
