The Mahindras were on the verge of exiting renewables because of its 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 instead opting for a ramp-up was the 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 five times in the next five years.

He said the diversified group, 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.

With the renewables business, the capital was a “problem” because of the consumption of resources and also the 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.

According to 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 a plan to buy a 30 per cent stake in Mahindra Susten at an equity value of Rs 2,371 crore and also proposed to set up the Invit as part of the same transaction.

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.