Lotte Wellfood's integrated Indian entity, "LOTTE India," posted double-digit growth just one year after integrating its confectionery and ice cream businesses.
Lotte Wellfood said on the 9th that LOTTE India's sales in the first half of this year rose about 28% from a year earlier. It noted that its "ONE INDIA" strategy—expanding local production infrastructure and improving the efficiency of distribution network operations—is delivering results.
Lotte Wellfood's India business began in 2004 with the establishment of a local confectionery unit. It then expanded its scope by acquiring Indian ice cream company Havmor in 2017, and in July last year LOTTE India absorbed Havmor, reorganizing the confectionery and ice cream operations under a single corporate entity.
After the merger, the Havmor brand, which enjoys strong local recognition, has been retained, while business synergy is being expanded by sharing production, sales, and logistics bases with the existing LOTTE brand.
By business line, ice cream sales rose 29% from a year earlier, driving overall growth. As production stabilized at the new ice cream plant in Pune, Maharashtra, India, which began full operations in Feb. last year, product supply increased.
The Pune plant's first-half production this year increased about 85% from a year earlier. Lotte Wellfood said this enabled it to proactively meet India's peak season demand for ice cream and boost sales.
Centering on the Pune plant, Lotte Wellfood is also expanding the rollout in India of leading Korean ice cream brands, including the local version of the Pig Bar, "Krunch," as well as the local versions of Watermelon Bar and Jaws Bar, "Shark." The aim is to strengthen the competitiveness of K-ice cream offerings in the local market.
Confectionery sales also grew 26% from a year earlier, extending the growth trend. Actively expanding distribution coverage in the TT (Traditional Trade) channel, centered on India's traditional mom-and-pop retailers, contributed to higher sales.
To drive additional growth in confectionery, Lotte Wellfood is preparing to begin full operations of the fourth production line for Lotte Choco Pie at its plant in Rohtak, Haryana, India.
To enhance the operating efficiency of the integrated Indian entity, Lotte Wellfood plans to continue coverage integration that links the existing sales and distribution networks in the south, north, and west into one. By integrating logistics networks and production bases, it aims to improve expense efficiency and enhance profitability.
On the product side, the company plans to strengthen local market competitiveness around Lotte Wellfood's flagship brands such as Pepero and the Pig Bar. Based on this growth strategy, LOTTE India has set a goal of reaching 1 trillion won in annual sales by 2032.
A Lotte Wellfood official said, "Marking the first anniversary of the integrated entity, production efficiency and distribution competitiveness in the Indian market have been further strengthened," adding, "We will maximize infrastructure synergy by combining the strengths of the confectionery and ice cream businesses and expand the introduction of core brands to leap forward as India's top comprehensive food company."