Lumax Resource Completes 60% Stake Acquisition 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, announced on Tuesday, marks Lumax Auto Technologies Limited's (LATL) entry into the green and alternate fuels sector, including CNG and hydrogen applications. The acquisition was financed through a mix of debt and internal funds, according to the company.

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Greenfuel supplies high-pressure fuel delivery systems 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 offerings for automotive OEMs in India.

Strategic Partnership with Greenfuel

The collaboration between Lumax and Greenfuel aims to leverage their combined strengths. Both management teams will work together to maximise business potential. Greenfuel's Managing Director and CEO, Akshay Kashyap, along with the existing management team, will continue overseeing daily operations.

Deepak Jain, Promoter Director of LATL, highlighted the growing CNG vehicle market, especially in passenger vehicles. He stated that LATL intends to seize this opportunity by providing top-notch solutions to customers. The company's primary focus remains on becoming a leading provider of systems and components in the alternate fuels sector.

Advisors and Legal Counsel

KPMG Corporate Finance served as exclusive advisors to LATL during this acquisition process. Grant Thornton provided advisory services to Greenfuel. Cyril Amarchand Mangaldas acted as legal counsel for LATL. This collaboration is expected to bring substantial value to stakeholders while promoting innovation in the automotive industry.

The partnership is set to drive innovation in cleaner mobility solutions. It aligns with LATL's goal of supporting sustainable growth in the evolving alternate fuels market. By diversifying its portfolio, LATL aims to strengthen its position in this rapidly expanding sector.

This strategic move positions Lumax Auto Technologies favourably within the green energy landscape. It reflects a commitment to advancing sustainable mobility solutions while capitalising on emerging market opportunities.