Prudential Financial Considers Sale of Loss-Making India Asset Management Unit

Prudential Financial Inc.'s investment management division is reportedly considering the sale of its struggling Indian asset management business, marking a potential exit from a market where competitors are doubling down on growth opportunities.

Strategic Divestiture Under Consideration

PGIM Inc., the investment management arm of US-based Prudential Financial, has appointed EY to advise on the potential sale of its Indian asset management subsidiary. The decision comes after the parent company evaluated the growth trajectory of PGIM India Asset Management Pvt Ltd., which currently manages assets worth approximately ₹26,600 crores.

Financial Performance Challenges

The Indian unit has faced significant financial headwinds, with after-tax losses escalating in recent years. According to the company's annual report, PGIM's losses in India exceeded ₹23.5 crores for the year ended March 2025. The business has experienced minimal meaningful expansion over recent years, contributing to the strategic review.

Market Context and Competitive Landscape

The potential sale occurs against a backdrop of divergent strategies among global asset managers in India. While PGIM considers an exit, competitors like BlackRock Inc. are investing aggressively to capitalize on India's rising equity culture and expanding retail investor base. This contrast highlights varying approaches to the Indian market's growth potential.

Notably, WestBridge Capital acquired a 15% stake in Edelweiss Asset Management Ltd. last year, demonstrating continued investor interest in India's asset management sector. Such transactions underscore the market's attractiveness for some players despite PGIM's challenges.

Corporate Restructuring Efforts

PGIM attempted to revitalize its Indian operations through leadership changes, appointing a new chief executive officer in July 2025. However, these efforts appear insufficient to address the underlying performance issues that have prompted the sale consideration.

PGIM operates as a global investment firm managing approximately $1.5 trillion in assets across fixed income, equity, alternatives, and real estate. The firm acquired Deutsche Bank's Indian asset management business in 2015, but the investment has failed to generate the expected returns over the past decade.