LOTTE Wellfood announced on the 2nd that it has completed the merger process with its Indian subsidiary Lotte India and 'Havmor Ice Cream.' The launch of this integrated company is expected to serve as a starting point for LOTTE's ONE INDIA strategy in the world's most populous country, India.
The merger was carried out in a way that Lotte India absorbed Havmor. The absorbed Havmor ice cream brand will be continuously developed.
LOTTE Wellfood aims to enhance management efficiency and maximize synergy effects between the two companies with this merger. Lotte India targets 'annual sales of 1 trillion won' by 2032.
They are expecting effects from the expansion of their scale. The existing Lotte India operated primarily in southern Chennai and northern Haryana, while Havmor focused on western Gujarat. This integration allows them to encompass regions in the north, south, and west. It has also become easier to pursue operational efficiency through the integration of logistics and production bases.
They are also making active large-scale investments. A new ice cream plant in Pune, which invested 70 billion won, began full-scale operations in February. The 'Dwaeji Bar (local name Krunch)' launched in the Indian market has achieved cumulative sales of 1 million units within three months of its release, enhancing the status of K-ice cream.
The establishment of the first overseas production base for 'Pepero' at the Haryana factory, with an investment of 33 billion won, is also progressing smoothly, aiming for operation in the second half of this year. Lotte India aims for a 15% growth this year through the operation of the new Pune plant and the introduction of new Pepero. The sales in the Indian region for the first quarter of this year were 80.2 billion won, marking an increase of about 24% compared to the same period last year. Last year's total sales were 290.5 billion won.
A representative from LOTTE Wellfood noted, 'With the launch of the integrated corporation, we will begin serious growth towards achieving annual sales of 1 trillion won in the Indian market,' adding, 'We will combine the strengths of both companies to leap forward as the best comprehensive confectionery corporations in India.'