Mahindras plot massive renewables expansion

In a strategic shift, Mahindra & Mahindra, initially considering an exit from renewables due to substantial capital demands, now eyes a remarkable fivefold expansion in the next five years.

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Anish Shah, the managing director and chief executive of Mahindra and Mahindra, highlighted the pivotal factor behind this revaluation-a shift prompted by the introduction of infrastructure investment trusts (Invits).

During a Ficci event, Shah emphasized the company's intention to scale up its renewables business, fuelled by a partnership with a global investor. He outlined the diversified conglomerate's strategic approach, emphasizing a preference for large-scale operations when venturing into new businesses.

Capital constraints had been a significant impediment in the renewables sector, leading to resource consumption and mounting debt, as Shah acknowledged. However, the company has devised a comprehensive plan to address these challenges, affirming its commitment to robust growth prospects in the segment.