Mahindras were on the verge of exiting from renewables due to high capital requirements, but are now looking at growing the business five times in the next five years, a top official said on Thursday.
A key change which prompted the rejig in plans and indeed opting for a ramp-up was introduction of the infrastructure investment trusts (Invits), Mahindra and Mahindra's managing director and chief executive Anish Shah said.
Speaking at a Ficci event, Shah said the renewables business, for which the company has partnered with a global investor, will grow 5x in the next five years.
He said the diversified grouping, which has interests in the automotive and tech businesses, looks at scale when looking at a new business and prefers not to be in a business at all if it cannot do anything on a large scale.
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With the renewables business, the capital was a "problem" because of the consumption of resources and also piling up of debt.
Shah said the company has a clear plan for the business now, and will be aiming to grow the same going ahead.
As per the group's website, the renewables business has a capacity of 1.55 GW. Canada's Ontario Teachers' Pension Plan Board had last year announced to buy a 30 per cent stake in Mahindra Susten Private Limited at an equity value of Rs 2,371 crore and also proposed to set up the Invit as part of the same transaction.
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Meanwhile, Shah said India has made its place of leadership well known on the world stage and pointed out that strong governance and vibrant capital markets are a necessity for every leadership nation.
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