Lumax Expands into Green Fuels with Greenfuel Acquisition

On September 14, 2024, Lumax Auto Technologies Limited (LATL), a top supplier of automotive systems and components, announced it would acquire a majority stake in Greenfuel Energy Solutions Private Limited (Greenfuel). 

This move marks LATL’s entry into the green and alternative fuels sector, which includes CNG, hydrogen, and other applications, and is expected to grow rapidly in the future.

Greenfuel specialises in high-pressure fuel delivery and storage systems for CNG and hydrogen vehicles, as well as fire and smoke alarm systems for the automotive industry. It supplies major OEMs like Maruti Suzuki, TATA Motors, and Volvo Eicher Commercial Vehicles. The company has strong technology partnerships that give it a competitive edge. However, some of its ancillary businesses will not be part of this acquisition.

This partnership will allow LATL to broaden its product offerings and collaborate closely with Greenfuel to strengthen its presence in the alternative fuels market. Greenfuel will continue to be managed by its current team, led by Mr Akshay Kashyap, who has successfully built the company’s platform.

Mr Deepak Jain, Promoter Director of LATL, said, “This is another step in our long-term growth strategy of strategic partnerships with industry leaders. 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.”

Mr 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.”

About Lumax Auto Technologies Ltd

Lumax Auto Technologies Ltd, along with its subsidiaries, is a leading manufacturer of various automotive products. They excel in designing, testing, and making gear shifters and interior solutions in India. The company has a strong distribution network with 26 manufacturing plants across major automotive regions in the country. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.