Lumax's Greenfuel Acquisition: Paving the Path to Sustainable Mobility

Lumax Resource has acquired a 60% stake in Greenfuel Energy Solutions' alternate fuel business for Rs 153.09 crore. This acquisition allows Lumax Auto Technologies to expand into the growing green and alternate fuels sector, emphasizing CNG and hydrogen, providing enhanced solutions for the automotive industry.

Lumax Resource has successfully acquired a majority 60 per cent stake in Greenfuel Energy Solutions' alternate fuel business for Rs 153.09 crore, according to a statement released on Tuesday.

This marks a significant step for Lumax Auto Technologies Limited (LATL), as it extends its reach into the promising sector of green and alternate fuels, including CNG and hydrogen, anticipating strong growth in the coming years.

The acquisition, funded through a combination of debt and internal accruals, aims to leverage market opportunities in the CNG vehicle sector, particularly focusing on passenger vehicles, while maintaining LATL's position as a pioneering provider of automotive systems and components.

Greenfuel, known for supplying high-pressure fuel delivery and storage systems for CNG and hydrogen vehicles, as well as fire and smoke alarm systems, counts major OEMs like Maruti Suzuki, Tata Motors, and Volvo Eicher Commercial Vehicles among its clients.

The acquisition grants LATL an opportunity to diversify and expand its automotive solutions, strengthening its market presence. The partnership aims to deliver substantial value by advancing innovation and the transition to sustainable mobility solutions, while Greenfuel's current management under CEO Akshay Kashyap will continue overseeing daily operations.

Professional advisory roles were played by KPMG Corporate Finance and Grant Thornton for LATL and Greenfuel respectively, with Cyril Amarchand Mangaldas serving as LATL's legal counsel.

(With inputs from agencies.)