Lumax Auto Technologies Limited (LATL), a prominent Tier-1 automotive systems and components supplier, has made a strategic move to enter the rapidly expanding green fuels sector by acquiring a 60% stake in Greenfuel Energy Solutions for a total of INR 153.09 crores. The transaction was completed through LATL's wholly owned subsidiary, Lumax Resources Pvt Ltd. This acquisition, funded through a combination of debt and internal accruals, positions Lumax to capitalize on the growing demand for alternate fuels like CNG, hydrogen, and other eco-friendly solutions in the automotive industry.

About Greenfuel Energy Solutions

Greenfuel Energy Solutions is a well-established supplier specializing in high-pressure fuel delivery and storage systems, which cater primarily to CNG and hydrogen-powered vehicles. The company is also a key provider of fire and smoke alarm, detection, and suppression systems within the automotive sector. Greenfuel’s products and systems are utilized by major Original Equipment Manufacturers (OEMs) such as Maruti Suzuki, TATA Motors, and Volvo Eicher Commercial Vehicles.

With a proven track record of strong technology collaborations, Greenfuel has become an industry leader in delivering cutting-edge fuel systems, providing a competitive edge in an increasingly competitive market. This acquisition gives LATL access to Greenfuel's advanced technologies and its established OEM customer base, marking a significant step forward in LATL's long-term growth strategy.

Strategic Rationale Behind the Acquisition

Mr. Deepak Jain, Promoter Director of LATL, expressed his enthusiasm about this acquisition, stating, “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. 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.”

Similarly, Mr. Anmol Jain, Managing Director of LATL, highlighted the synergies between the companies: “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 capitalize on the significant growth potential of this business by leveraging synergies in customer relationships, advanced technologies, and manufacturing excellence.”

Mr. Akshay Kashyap, the MD and CEO of Greenfuel, also expressed his excitement about the partnership: “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.”

The Path Forward for LATL and Greenfuel

This acquisition allows LATL to significantly diversify its product portfolio, enabling it to offer a wider range of solutions to automotive OEMs across India. As the CNG and hydrogen vehicle markets are expected to see rapid growth, particularly within the passenger vehicle segment, LATL is well-positioned to benefit from this demand by offering robust, high-performance fuel delivery systems and components. Additionally, the collaboration with Greenfuel allows both companies to combine their strengths in manufacturing, technology, and market presence.

In terms of operations, Greenfuel’s day-to-day business and management will continue under the leadership of Mr. Akshay Kashyap and the company’s existing professional management team. This continuity ensures that Greenfuel’s established operations and customer relationships will not be disrupted while it benefits from the support and resources of LATL.

About Lumax-DK Jain Group

Lumax-DK Jain Group, a leading player in the Indian automotive industry, provides a wide range of automotive solutions, including Lighting Modules, Frame Chassis, Integrated Plastic Modules, Gear Shift Levers, Power Window Switches, Oxygen Sensors, and more. The group is known for its market leadership in automotive lighting solutions, vehicle interior systems, and gear shift levers, serving almost all major OEMs in India.

The group has 11 partnerships with global automotive companies and operates across 38 locations in India, making it a significant player in India’s automotive sector.

About Lumax Auto Technologies Limited

LATL is a market leader in the design, testing, and manufacturing of automotive components, specifically gear shifters and interior solutions. With a pan-India distribution network and 26 manufacturing plants across major automotive clusters, LATL serves a diverse portfolio of key OEM customers, including Bajaj Auto, Honda Motorcycles, Maruti Suzuki, and Tata Motors. The company's commitment to innovation and manufacturing excellence has helped it maintain a strong market presence in the competitive automotive sector.

About Greenfuel

Greenfuel Energy Solutions has established itself as a leading supplier in the alternate fuels and automotive safety systems industry. It specializes in high-pressure fuel delivery systems and fire and smoke detection systems, primarily for CNG and hydrogen vehicles. Greenfuel serves large OEMs and has strong technology collaborations that enable it to offer industry-leading solutions.

Conclusion

The acquisition of Greenfuel Energy Solutions by Lumax Auto Technologies positions the company to tap into the growing green fuels market, particularly in the segments of CNG and hydrogen-powered vehicles. With strong technology collaborations and a focus on sustainability, LATL is poised to expand its presence in the automotive industry’s evolving landscape, enhancing its offerings and contributing to cleaner, more sustainable transportation solutions in India.