Lumax Auto Technologies signed an agreement to acquire a majority stake in Greenfuel Energy Solutions from its existing shareholders marking LATL’s entry into the green and alternate fuels segment (across CNG, hydrogen and other applications) which is projected to experience significant and rapid growth in the near future.
How will Greenfuel be beneficial?
Greenfuel is a prominent supplier of high-pressure fuel delivery and storage systems (including related components and subsystems) primarily for CNG and hydrogen automobiles and fire and smoke alarm, detection and suppression systems (including related components and subsystems) for the automotive industry (business). The company provides these critical components and subsystems to major OEMs such as Maruti Suzuki, TATA Motors, and Volvo Eicher Commercial Vehicles; and continues to be managed by Akshay Kashyap and the existing professional management team.
Akshay Kashyap, founder and CEO of Greenfuel said, “We are excited about this strategic partnership with LATL which merges their extensive market reach and strong customer base with our core competence in alternate fuel systems. The collaboration is expected to unlock tremendous value for both stakeholders and drive innovation in the automotive sector, leading to a shift towards cleaner and more sustainable mobility solutions”
Deepak Jain, Promoter Director of LATL, said, “With the CNG vehicle market expected to witness strong growth, specifically in the passenger vehicle segment, we will look to leverage this platform to deliver high-quality solutions to our customers and be an industry leader for systems and components in the ‘alternate fuels’ segment.”
Anmol Jain, Managing Director of LATL, said, “This partnership will help us diversify our product offerings to key OEMs as well as increase our per vehicle content in the four-wheeler segment. Together with Greenfuel, our goal will be to harness the Business’ significant growth potential by unlocking synergies across customers, technologies and manufacturing excellence.”
Greenfuel has formed robust technology partnerships that offer a competitive edge in delivering top-tier solutions to customers. Additionally, Greenfuel’s other ancillary businesses will be separated and excluded from the proposed acquisition.
KPMG Corporate Finance and Grant Thornton acted as the exclusive advisors to LATL and Greenfuel respectively.
