LOTTE Wellfood has completed the construction of a new factory in Pune, India, which will produce frozen treats such as the Pig Bar and Jaws Bar, and has begun to target the Indian market with a population of 1.4 billion.
Chairman Shin Dong-bin attended the new factory completion ceremony held locally on the 6th and said, "This completion of the new factory will serve as an important milestone for LOTTE's global food business."
According to LOTTE, the 'Habmore Pune plant' is the first production facility that LOTTE Wellfood has expanded since acquiring Habmore in December 2017.
The factory sits on an area of 60,000 square meters, equivalent to the size of eight soccer fields, and is six times larger than the existing Gujarat factory.
The new factory has significantly improved production efficiency by introducing advanced production technologies from Korea, including automation equipment from LOTTE Wellfood.
LOTTE Wellfood expects that stable product production and supply during the peak season for frozen treats will lead to an increase of over 15% in its frozen treat revenue in India this year compared to last year.
The Pune plant, which currently operates nine lines, plans to expand its production lines to 16 by 2028.
Since entering the Indian market in 2004 through LOTTE Wellfood, the LOTTE Group currently operates two subsidiaries: LOTTE India, which handles general goods, and Habmore, which manages frozen treats.
As of 2023, LOTTE Wellfood's revenue in India reached 270 billion won.
Chairman Shin noted in his speech at the Pune plant completion ceremony, "Since acquiring the historic Habmore companies and starting the frozen treat business in India, LOTTE has achieved remarkable growth in line with India's dazzling economic growth rate," and added, "In the future, we will create top-quality products to make Habmore the most beloved brand in India."
The completion ceremony was attended by Vice President Shin Yoo-yeol, Lee Young-gu, head of the LOTTE Food Group, and Lee Chang-yeop, CEO of LOTTE Wellfood, and Maharashtra Chief Minister Eknath Shinde also delivered a speech.
LOTTE Wellfood plans to leverage the production volume from the Pune factory to increase its market dominance in western India while using the Pune factory as a foothold for expansion into southern India.
The production volume from the existing Gujarat factory will be supplied more intensively to the key commercial areas of the northwest.
LOTTE Wellfood believes that it will experience cost reduction improvements since the Pune city will allow for the supply of major raw materials for frozen treat production from nearby locations.
Habmore will also expand the production of LOTTE brand products. Currently, it produces World Cones at the Gujarat factory, while the new Pune factory plans to sequentially produce the Pig Bar, Jaws Bar, and Watermelon Bar within the year to supply them to the Indian market.
In order to enhance brand competitiveness in global markets, including India, LOTTE plans to continuously expand production volume. LOTTE Wellfood is accelerating its efforts in the Indian market by proceeding with the completion of the new factory and the launch of a consolidated corporation.
In the first half of this year, LOTTE plans to launch a consolidated corporation of LOTTE India and Habmore to strengthen its product portfolio and integrate logistics hubs to create efficiencies. Additionally, it has designated its Haryana plant as the first overseas production base for the Pepero brand and plans to commence production from the second half of this year.
LOTTE Wellfood plans to strengthen its global business while adjusting its business portfolio to enhance corporate value. During his trip to India, Chairman Shin held discussions on business issues and cooperation with top executives from global corporations including Mukesh Ambani of Reliance Group, Anand Mahindra of Mahindra Group, and Bill Winters of Standard Chartered Group.