South Korean international confectionery company Lotte Wellfood which entered India in 2004 by acquiring Parrys and renamed the same to what we today call Lotte India and acquired Havmor Ice Cream in December 2017 has now decided to merge the two entities into an integrated one under its One India initiative.
On July 29, the Board of Directors of Lotte India and Havmor each approved the merger plan which will take the form of Havmor Ice Cream integrating with Lotte India and both the brands continuing 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.
With this merger, Lotte Wellfood aims to enhance Lotte’s brand presence and secure growth momentum in the Indian Confectionery and ice cream market and achieve an annual sales of 1 Trillion KRW (~Rs 6000 Crore) through a series of investments and secure future growth drivers.
As its first investment under One India initiative, Lotte Wellfood has also announced its plans to set up a new ice-cream production facility for Havmor with an investment of Rs 400 Crore in Pune, Maharashtra 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, 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.”
Also, in line with the localisation strategy, Lotte India had earlier invested over Rs 210 Crore 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. And following Lotte Choco Pie, the company plans to develop and introduce localized versions of Lotte Pepero that reflect local eating habits and climate conditions.
