Case Study - Acquisition of Henkel India Ltd. by Jyothy Laboratories –Will it be Successful? | Original Article

ABSTRACT:

Mergers and Acquisitions is a strategic move made by a company to achieve inorganic growth. However selecting a right partner for merge requires lot of deliberations. An acquirer should select the target after a thoughtful process. Size of a company, mode of payment, benefits from the acquiring company and post-merger integration are few of the key parameter that should well planned before making a final choice. The present case is about building operational efficiencies by Jyothy Laboratories through acquisition of Henkel Indian operations. Jyothy was depended on it single product “Ujala Supreme” for revenue and had plans for market expansion by increasing its product portfolio. On the other hand Henkel India struggled for survival since the time of its entry into Indian markets. Though Henkel had a strong product portfolio but had failed to take the leverage in Indian markets. Jyothy had a strong presence in semi urban and rural areas parallel to this Henkel had a good hold in urban area. By acquiring Henkel Jyothy will get access to the bunch of products but also get entry in new segment. Since long Jyothy was trying hard to acquire Henkel Indian arm and finally succeeded in March 2011. The case is developed by referring various secondary sources like newspaper articles, annual reports of the companies and its website.