Lumax Auto Technologies Limited (LATL), a leading Tier-1 automotive systems and components supplier, has acquired a 60 per cent stake in Greenfuel Energy Solutions' alternate fuels business for Rs 153.09 crore through its wholly owned subsidiary, Lumax Resources Pvt Ltd. The acquisition, funded through a mix of debt and internal accruals, marks LATL's foray into the green and alternate fuels segment, encompassing CNG, hydrogen, and other applications poised for robust and accelerated growth.
Greenfuel is a leading supplier of high-pressure fuel delivery and storage systems, including components and subsystems for CNG and hydrogen vehicles, and fire and smoke alarm, detection, and suppression systems for the automotive industry. It counts major OEMs such as Maruti Suzuki, Tata Motors, and Volvo Eicher Commercial Vehicles among its clients.
Promoter Director of LATL, Deepak Jain, stated: "This marks another milestone in our long-term growth strategy of forming strategic partnerships with industry leaders. With the CNG vehicle market set for significant growth, particularly in the passenger vehicle segment, we aim to capitalise on this opportunity by delivering high-quality solutions to our customers. Our focus remains on establishing ourselves as a leader in systems and components for the evolving ‘alternate fuels' segment, supporting our sustainable and profitable growth journey."
LATL Managing Director, Anmol Jain, commented: "This partnership allows us to expand our product portfolio for key OEMs while increasing our per-vehicle content in the four-wheeler segment. By collaborating with Greenfuel, we aim to leverage synergies in customer relationships, advanced technologies, and manufacturing excellence to unlock the significant growth potential of this business."
Greenfuel MD and CEO, Akshay Kashyap, added: "We are thrilled about this strategic partnership with LATL, which combines their extensive market presence and strong customer relationships with our expertise in alternate fuel systems. Together, we aim to deliver substantial value to stakeholders, foster innovation in the automotive industry, and advance the shift to cleaner, more sustainable mobility solutions."
This partnership allows LATL to broaden its portfolio for automotive OEMs in India while strengthening its position in the alternate fuels segment. The collaboration between Lumax and Greenfuel aims to unlock the full potential of the business, establishing Greenfuel as a leading player in systems and components for alternate fuels.
Greenfuel's day-to-day operations will continue to be led by Kashyap and the existing professional management team, which has successfully built the business over the years.
KPMG Corporate Finance and Grant Thornton served as exclusive advisors to LATL and Greenfuel, respectively, while Cyril Amarchand Mangaldas acted as legal counsel to LATL.