The acquisition offers LATL an opportunity to diversify its product portfolio for automotive OEMs in India.
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Lumax Auto Technologies Limited (LATL) has acquired a 60% stake in Greenfuel Energy Solutions’ alternate fuels business for INR 153.09 crores. This acquisition, executed through LATL’s subsidiary Lumax Resources Pvt Ltd, marks LATL’s entry into the green fuels sector. The deal was funded through debt and internal accruals, and aims to capitalise on the anticipated growth in CNG, hydrogen, and other alternate fuel applications. Greenfuel supplies fuel delivery systems for CNG and hydrogen vehicles, and fire and smoke alarm systems for the automotive industry.LATL and Greenfuel JV
LATL’s acquisition provides them access to Greenfuel’s existing client base, which includes major automotive manufacturers like Maruti Suzuki, Tata Motors, and Volvo Eicher Commercial Vehicles. Greenfuel has also developed key technology partnerships to enhance its offerings. LATL intends to leverage these relationships and technologies to expand its product portfolio and increase its presence in the four-wheeler segment.
“This marks another milestone in our long-term growth strategy of forging strategic partnerships with industry leaders. As the CNG vehicle market is poised 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 leading provider of systems and components in the evolving ‘alternate fuels’ segment, which will further support our sustainable and profitable growth journey,” stated Deepak Jain, Promoter Director of LATL.
“This partnership enables us to expand our product portfolio for key OEMs while increasing our per-vehicle content in the four-wheeler segment. Collaborating with Greenfuel, we aim to capitalise on the significant growth potential of this business by leveraging synergies in customer relationships, advanced technologies, and manufacturing excellence,” commented Anmol Jain, Managing Director of LATL.
Broader portfolio
The acquisition offers LATL an opportunity to diversify its product portfolio for automotive OEMs in India. The management teams of both companies plan to collaborate strategically. Their combined goal is to position Greenfuel as a leader in the alternate fuels systems and components market. Greenfuel’s daily operations will continue under the leadership of Akshay Kashyap and the existing management team.
KPMG Corporate Finance advised LATL on the acquisition, while Grant Thornton advised Greenfuel. Cyril Amarchand Mangaldas provided legal counsel to LATL. This acquisition represents a significant step for LATL in entering the green fuels market, leveraging Greenfuel’s expertise and established customer base. The collaboration aims to capitalise on the growing demand for alternate fuel solutions in the automotive industry. Both companies see this partnership as a key driver of future growth and innovation in sustainable mobility.
“We are excited about this strategic partnership with LATL, combining their extensive market presence and strong customer relationships along with our expertise in alternate fuel systems. This collaboration is poised to deliver significant value for all stakeholders while fostering innovation in the automotive industry and advancing the transition to cleaner, more sustainable mobility solutions,” mentioned Akshay Kashyap, MD and CEO of Greenfuel.
