South Korean confectionery giant Lotte Wellfood Co. announced plans to merge its Indian subsidiaries, Lotte India Co. and Havmor Ice Cream Pvt, to enhance its presence and brand recognition in the South Asian market. The merged entity aims to achieve 1 trillion won (US$722.4 million) in annual sales.
Lotte India will absorb Havmor Ice Cream, with the boards of both companies approving the merger. Shareholder approval is expected in the second half of this year, and the integration is slated for early next year.
The strategic move is designed to improve operational efficiency and maximize synergies between the two companies. “We have decided to launch one integrated entity in India with long-term goals to enhance Lotte brand awareness and drive growth,” stated Yi Chang-yeop, CEO of Lotte Wellfood. The company plans to expand its investment in India to support this growth.
Lotte Wellfood entered the Indian market in 2004 by acquiring Parrys Confectionery, later renamed Lotte India. In 2017, it acquired Havmor Ice Cream, a leading brand in Western India. Last year, Lotte India reported sales of 103.4 billion won, while Havmor earned 165.6 billion won.
The company continues to invest heavily in India, including a 70 billion won ice cream factory in Pune set to open later this year and a 33 billion won investment in Haryana for a new Pepero production line, operational next year. These expansions will help Lotte penetrate Central and South India, further solidifying its market position.
Lotte India and Havmor currently operate six factories across India, producing popular snacks like Pepero and Choco Pie, with new flavors tailored for the Indian market.
