Lotte India and Havmor Unite: ₹400 Crore Ice-Cream Investment

In a strategic move to strengthen its foothold in India, South Korean confectionery giant Lotte Wellfood is merging its Indian subsidiaries, Lotte India and Havmor Ice Cream. This merger, part of Lotte's "One India" initiative, aims to accelerate growth in the Indian confectionery and ice cream markets. The merger is expected to be completed by the second half of this year.

As part of this integration, Lotte Wellfood will invest ₹400 crore in a new ice-cream production facility for Havmor in Pune, Maharashtra. This facility will extend Havmor's reach from western to south-central India, enhancing its market presence.

The newly formed entity aims for annual sales of approximately ₹6,000 crore, driven by strategic investments to fuel future growth. Chang-Yeop Lee, CEO of Lotte Wellfood, highlighted that the "One India" strategy will enhance Lotte's brand presence and sustain growth in the rapidly expanding Indian market, improving management efficiency and maximizing synergy.

The boards of Lotte India and Havmor approved the merger on July 29. Despite the integration, both brands will maintain their distinct identities to ensure smooth operations. The merger is set to be finalized by the end of the year, with the unified entity launching early next year.

Additionally, Lotte India is investing over ₹210 crore to establish a new production base for Lotte Pepero at its Haryana factory. Operations are slated to begin in the second half of next year, introducing localized versions of Lotte Pepero tailored to Indian preferences and climate conditions.

News by Rahul Yelligetti