This collaboration with Greenfuel enables LATL to expand and diversify its range of solutions for automotive OEMs in India.
Lumax Auto Technologies has completed the acquisition of a 60% stake in the alternate fuels business of Greenfuel Energy Solutions for Rs 153.09 crore. This acquisition, managed through Lumax Resources, a wholly owned subsidiary, marks the Tier-1 automotive systems and components supplier’s entry into the green and alternate fuels segment, including applications such as CNG and hydrogen. The funding for this transaction was sourced through a mix of debt and internal accruals.
This strategic partnership with Greenfuel allows Lumax Auto Technologies Ltd (LATL) to expand and diversify its automotive solutions portfolio for original equipment manufacturers (OEMs) in India. Both Lumax and Greenfuel management teams will collaborate to leverage their combined strengths and maximize the potential of the business.
Deepak Jain, Promoter Director of LATL, commented on the acquisition as a significant step in their long-term strategy to build partnerships with industry leaders. He highlighted the growth potential in the CNG vehicle market, especially in the passenger vehicle segment, and LATL’s goal to provide high-quality solutions in this area.
Anmol Jain, Managing Director of LATL, noted that the partnership would enhance their product offerings and increase their content per vehicle in the four-wheeler segment.
The existing management team, led by Akshay Kashyap, will continue to manage the day-to-day operations of Greenfuel. The company specializes in supplying high-pressure fuel delivery and storage systems for CNG and hydrogen vehicles, as well as fire and smoke alarm and suppression systems. Among Greenfuel’s clients are prominent OEMs such as Maruti Suzuki, TATA Motors, and Volvo Eicher Commercial Vehicles.
Advisory roles were filled by KPMG Corporate Finance and Grant Thornton for LATL and Greenfuel respectively, with Cyril Amarchand Mangaldas providing legal counsel to LATL.
