Strategic acquisition positions LATL in the fast-growing alternate fuels market, focusing on CNG, hydrogen, and sustainable mobility
Lumax Auto Technologies Limited (LATL), Tier-1 automotive systems and components supplier, has acquired a 60% stake in Greenfuel Energy Solutions’ alternate fuels business for ₹153.09 crores. This strategic investment, made through LATL’s wholly owned subsidiary, Lumax Resources Pvt. Ltd., signals the company’s entry into the booming green and alternate fuels segment, covering CNG, hydrogen, and other applications.
The acquisition, funded through a combination of debt and internal accruals, positions LATL to tap into the rapidly growing demand for sustainable automotive solutions. With Greenfuel’s expertise in high-pressure fuel delivery systems and fire safety components, the partnership opens doors for LATL to serve key OEMs like Maruti Suzuki, Tata Motors, and Volvo Eicher Commercial Vehicles.
Commenting on the acquisition, Mr. Deepak Jain, Promoter Director of LATL, said:
“This marks another milestone in our long-term growth strategy of forming strategic partnerships. The CNG market, especially in passenger vehicles, is on the brink of significant expansion, and we aim to deliver high-quality solutions that align with this demand. This partnership reinforces our commitment to sustainable growth and positions us as a leader in the alternate fuels segment.”
Mr. Anmol Jain,Managing Director of LATL, added:
“This collaboration enhances our product portfolio for key OEMs and allows us to increase our per-vehicle content in the four-wheeler segment. By leveraging Greenfuel’s advanced technologies and our manufacturing capabilities, we aim to fully capitalize on the growth potential of the alternate fuels market.”
Greenfuel specializes in high-pressure CNG and hydrogen systems as well as fire and smoke detection systems for the automotive industry. The company’s strong relationships with OEMs and established technology partnerships have made it a trusted name in the industry.
Mr. Akshay Kashyap, MD and CEO of Greenfuel, expressed his optimism:
“We are excited about this strategic partnership with LATL. Combining LATL’s extensive market presence and strong customer relationships with our expertise in alternate fuel systems creates a platform for innovation and sustainable growth. Together, we aim to advance the transition to cleaner mobility solutions while delivering significant value to our stakeholders.”
This partnership allows LATL and Greenfuel to collaborate on developing cutting-edge technologies and enhancing their market offerings. The management teams will work together to unlock the full potential of the business, aiming to position Greenfuel as a leading player in the alternate fuels segment.
Greenfuel’s day-to-day operations will continue under the leadership of Mr. Akshay Kashyap and his professional management team, ensuring stability and focus on growth.
KPMG Corporate Finance and Grant Thornton acted as advisors to LATL and Greenfuel, respectively. Cyril Amarchand Mangaldas provided legal counsel to LATL, ensuring a smooth transaction.
This acquisition reinforces Lumax Auto’s commitment to sustainable mobility and solidifies its position as a key player in the automotive industry’s shift toward green and alternate fuels. With this move, LATL is set to redefine its role in fostering innovation for a cleaner future.
