Shell, which was given the approval to set up a company in the country by the Foreign Investment Promotion Board (FIPB) on Saturday, would make an initial investment of Rs 10 crore for marketing and assembling of SPV Home Systems, D Miller, senior officer, Shell Renewables International, United Kingdom said.

He said the company would market solar PV home systems mostly in South India and eventually move into other areas including biomass and wind.

On whether Shell was considering manufacturing solar cells in India, he said, "only if the market develops, the company will invest in manufacturing."

Shell International Renewables is presently manufacturing solar cells in Holland and Germany. The Indian subsidiary would import solar cells from its group companies in these countries to manufacture SPV home systems.

Shell hasidentified renewable energy as its fifth core business and plans to invest US $ 500 million in the area in the next five years.

It is trying to develop sustainable business in rural electrification worldwide.