Lumax Completes Acquisition of 60% Stake in Greenfuel Energy's Alternate Fuel Business for Rs 153 Crore

Lumax Resource has acquired a 60% stake in Greenfuel Energy Solutions' alternative fuel business for Rs 153.09 crore. This acquisition marks Lumax Auto Technologies Limited's (LATL) entry into the green and alternative fuels sector, including CNG and hydrogen applications. The company anticipates significant growth in this area over the coming years. The purchase was financed through a mix of debt and internal funds.

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Greenfuel supplies high-pressure fuel delivery and storage systems, mainly for CNG and hydrogen vehicles. It also provides fire and smoke alarm systems for the automotive industry. Its clients include major OEMs like Maruti Suzuki, Tata Motors, and Volvo Eicher Commercial Vehicles. This partnership allows LATL to expand its range of solutions for automotive OEMs in India.

Strategic Collaboration with Greenfuel

The collaboration between Lumax and Greenfuel aims to leverage their combined strengths to unlock the business's full potential. Deepak Jain, Promoter Director of LATL, stated that as the CNG vehicle market grows, especially in passenger vehicles, they plan to seize this opportunity by offering high-quality solutions. However, their main focus remains on becoming a leading provider in the alternate fuels segment.

Greenfuel's daily operations will continue under Managing Director and CEO Akshay Kashyap, along with the current management team. Kashyap mentioned that this partnership is set to deliver substantial value for stakeholders while promoting innovation in the automotive sector. It also supports the shift towards cleaner, sustainable mobility solutions.

Advisors and Legal Counsel

KPMG Corporate Finance served as exclusive advisors to LATL, while Grant Thornton advised Greenfuel. Cyril Amarchand Mangaldas acted as legal counsel for LATL during this acquisition process. This strategic move is expected to enhance LATL's position in the evolving alternate fuels market, supporting its sustainable growth objectives.

The acquisition aligns with Lumax Auto Technologies' goal of establishing itself as a key player in the systems and components sector for alternate fuels. This step is part of their broader strategy to ensure sustainable and profitable growth in the future.