- Announces One India, a strategic initiative with long-term goals to enhance Lotte’s brand presence and secure growth momentum in the Indian market.
- Lotte will continue to maintain the heritage and beloved brand Havmor post-merger and expand it alongside Lotte as a leading ice cream brand in India
- Lotte Wellfood also plans to set up a new ice cream production facility for Havmor at Pune, Maharashtra with an investment of INR 400 Cr. in the second half of this year.
National, 05th August 2024: Lotte Wellfood, a South Korean international confectionery company, today announced the merger of its Indian subsidiaries Lotte India and Havmor Ice Cream to establish an integrated entity in India. The company has announced this move as part of its strategic initiative, One India, that aims to enhance Lotte’s brand presence and secure growth momentum in the Indian Confectionery & ice cream market. With this merger, the integrated entity will aim to achieve an annual sales of 1 Trillion KRW (Approx. INR 6000 Cr.) through a series of investments and secure future growth drivers.
As its first investment under One India initiative, Lotte Wellfood also announced its plans to set up a new ice-cream production facility for Havmor with an investment of INR 400 Cr. in Pune, Maharashtra. This expansion is expected to extend the company’s regional coverage from the west to the south-central regions of India.
Commenting on this strategic move, Chang-Yeop Lee, CEO of Lotte Wellfood, said “With the launch of ONE INDIA, we aim to solidify Lotte’s brand presence and secure growth momentum in the Indian market. Our long-term vision includes substantial investments in India, a key emerging market with the world’s largest population and robust economic growth. The merger of our Indian subsidiaries is a strategic move to enhance management efficiency and maximize synergy. Beyond strategic growth, our focus is on strengthening the local Lotte brand through diversified product portfolios and the integration of logistics and production bases. The merger will play a crucial role in achieving greater market share and increasing sales. This union will enable us to offer a more comprehensive range of products to our consumers, meeting their diverse preferences and needs.”
On the 29th of July, the Board of Directors of Lotte India and Havmor each approved the merger plan. The merger will take the form of Havmor Ice Cream integrating with Lotte India and both the brands will continue to retain the individual identities for seamless operations. The merger process is expected to be completed by second half of this year, with the new integrated entity set to launch early next year. Also, in line with the localisation strategy, Lotte India had earlier invested over INR 210 Cr. to establish the first overseas production base for Lotte Pepero at its Haryana factory, aiming to start operations in the second half of next year. Following Lotte Choco Pie, the company plans to develop and introduce localized versions of Lotte Pepero that reflect local eating habits and climate conditions.
Lotte Wellfood entered the Indian market in 2004 by acquiring Parrys, an Indian confectionery company, and renaming it Lotte India. In December 2017, Lotte acquired Havmor Ice Cream, one of India’s most beloved ice cream brands, further strengthening its operations. Lotte India recorded double digit growth last year. Havmor, holds the top market share in the ice cream sector in western India. The unified Lotte India entity aims to secure a virtuous financial structure and achieve annual sales of 1 Trillion KRW (Approx. INR 6000 Cr.) through aggressive investments for future growth.
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