Greenfuel Energy Solutions specialises in high-pressure fuel systems for CNG and hydrogen vehicles and offers fire and smoke detection and suppression systems for the automotive industry. With established technology collaborations, Greenfuel has a competitive edge in delivering industry-leading solutions. However, other ancillary businesses of Greenfuel will not be included in the acquisition. This strategic partnership allows LATL to diversify its offerings to automotive OEMs in India.
Management of Greenfuel operations
The day-to-day operations of Greenfuel will remain under the management of Akshay Kashyap and the existing professional team. The collaboration aims to position Greenfuel as a leading provider of systems and components in the alternate fuels market.
The completion of this transaction is subject to customary conditions. KPMG Corporate Finance served as the exclusive advisor to LATL, while Grant Thornton represented Greenfuel in the deal.
According to Akshay Kashyap, founder and CEO of Greenfuel, “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.”
What does it signify?
LATL’s investment in Greenfuel is seen as a strategic maneuver to tap into the burgeoning market for alternate fuel systems, driven by growing demand for environmentally friendly automotive solutions. The anticipated growth in the CNG vehicle market, particularly in the passenger vehicle segment, underscores the potential benefits of this acquisition for LATL.
By combining their technologies and synergies, Lumax Auto Technologies and Greenfuel Energy Solutions aspire to be at the forefront of providing innovative and sustainable mobility solutions. This partnership will not only boost their offerings but also contribute to a cleaner and more sustainable automotive industry.
Anmol Jain, Managing Director of LATL, expressed his enthusiasm, “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.”
As the auto industry continues to evolve towards green energy, LATL’s move represents a significant step in ensuring they stay ahead of the curve by offering advanced alternate fuel solutions to the major automotive OEMs in India. The alliance is expected to advance the automotive sector's shift towards cleaner energy and sustainability.
This strategic agreement underscores LATL’s commitment to growth and innovation in green technologies, aligning with global trends towards sustainability and environmental responsibility.
Deepak Jain, Promoter Director of LATL, stated, “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.”
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