Jyothy Stoops to Conquer: The Henkel India Acquisition

摘要

In the year 2011, Jyothy Laboratories (Jyothy), a small domestic player in the Fast Moving Consumer Goods (FMCG) industry in India, acquired Henkel India. Having historically followed a purely organic strategy, Jyothy made a strategic shift, by acquiring Henkel India. The case describes the circumstances leading to this acquisition from the perspective of both Henkel and Jyothy. The case outlines the intricacies involved in the entire acquisition process including the strategic motives, regulatory issues, bargaining between the parties and the post-acquisition phase. There were integration issues faced by both companies, specifically since Jyothy was an Indian company and Henkel India was part of a large European multinational. The main protagonist in the case has to address the challenges his company faces after the acquisition of Henkel India.