Lumax Auto Technologies has completed the acquisition of 60% stake in Greenfuel Energy Solutions’ alternate fuels business for Rs 153.09 crore, marking the Tier-1 automotive systems and components supplier's entry into the green and alternate fuels segment (across CNG, hydrogen and other applications).
The acquisition completed through its wholly owned subsidiary Lumax Resources, has been funded through a combination of debt and internal accruals.
This partnership with Greenfuel provides LATL the opportunity to broaden and diversify its portfolio of solutions for automotive OEMs in India. As strategic partners, the management teams of Lumax and Greenfuel will collaborate to harness their respective strengths, unlocking the full potential of the business.
Deepak Jain, Promoter Director of LATL, said, “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 capitalize on this opportunity by delivering high-quality solutions to our customers."
He added that their focus would be on being a leading provider of systems and components in the evolving ‘alternate fuels’ segment.
Anmol Jain, Managing Director of LATL, said “This partnership enables us to expand our product portfolio for key OEMs while increasing our per-vehicle content in the four-wheeler segment.”
Greenfuel’s day-to-day business and operations will continue to be managed by Akshay Kashyap and the existing professional management team, which has successfully developed the platform over the years. Greenfuel is a supplier of high-pressure fuel delivery and storage systems (including related components and sub-systems) primarily for CNG and hydrogen automobiles and fire and smoke alarm, detection and suppression systems (including related components and sub-systems) to the automotive industry. It is a supplier to key OEMs including Maruti Suzuki, TATA Motors and Volvo Eicher Commercial Vehicles among others.
KPMG Corporate Finance and Grant Thornton acted as the exclusive advisors to LATL and Greenfuel respectively. Cyril Amarchand Mangaldas acted as the legal counsel to LATL.