Lumax Auto to Fully Acquire IAC India for ₹221 Crore

Lumax Auto Technologies Ltd (LATL) has signed an agreement to acquire the remaining 25% stake in IAC International Automotive India Pvt Ltd (IAC India) from the International Automotive Components Group for ₹221 crore. LATL already owns a 75% stake in the company, acquired in March 2023. With this purchase, IAC India will become a wholly owned subsidiary of LATL. The transaction is expected to be completed by May 31, 2025, subject to standard closing conditions.

As of 11:02 AM on May 19, 2025,  Lumax Auto Technologies Ltd (LATL) share price was trading at ₹647.05, a 4.33% increase, with a 23.62% increase over the past 6 months and a 1.03% drop over the past year. 

Company Operations 

IAC India supplies plastic interior parts to major automotive manufacturers in India. Its client base includes Mahindra, Maruti Suzuki, Volkswagen, and Volvo Eicher Commercial Vehicles. The company is also the exclusive supplier of cockpits and door panels for Mahindra’s electric vehicle models BE6 and XEV 9e.

Manufacturing and Engineering 

The company operates five manufacturing plants located in Chakan (Pune), Manesar, Nashik, and Bangalore. In addition, it has an engineering centre in Pune with over 330 engineers. This centre handles product design, engineering, development, programme management, and tooling for both Indian and international customers.

LATL's diverse product portfolio encompasses vehicle interior systems, air management (intake systems), lighting solutions for two-wheelers and three-wheelers, gear shifting mechanisms, and mechatronic components. Operating across India with a network of 28 manufacturing facilities, the company supplies key automotive manufacturers such as Bajaj Auto, Honda Motorcycles, Mahindra, Maruti Suzuki, Tata Motors, and Toyota.

Following the acquisition, LATL is considering a merger of IAC India into itself. This proposal is subject to regulatory and legal approvals and aims to improve operational efficiency.

Continuity in Operations

As per the company’s filing, there will be no changes to IAC India’s daily operations, business activities, or management after the completion of the transaction. The IAC Group will continue to provide technical support through a separate technical assistance agreement.

Read more: FADA Reports Modest 2.95% Growth in India’s Auto Retail Sales for April 2025.

KPMG Corporate Finance acted as the exclusive financial advisor for LATL, while Cyril Amarchand Mangaldas served as the legal advisor for the transaction.

Conclusion

The full acquisition will bring IAC India completely under LATL’s ownership. While operations will continue as usual, the deal sets the stage for potential structural changes in the future, pending regulatory review.

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