Lotte chief eyes growth in India with new ice cream plant
Lotte Chairman Shin Dong-bin attended the inauguration ceremony of the Havmor Ice Cream plant in Pune, a city in western India, on Thursday, where he expressed confidence that the new facility would mark a milestone in Lotte's global food business, the group announced Sunday.
"Since acquiring the historic Havmor company and entering the Indian ice cream market here, Lotte has experienced remarkable growth in step with India's rapid economic development," Shin said in his congratulatory speech. "With the new facility, we are committed to delivering top-quality products to establish Havmor as India's most beloved brand."
The ceremony was also attended by Lee Young-goo, head of Lotte's Food Division, Lee Chang-yeop, CEO of Lotte Wellfood, Shin Yoo-yeol, head Lotte Group's Future Strategy Office, Devendra Fadnavis, chief minister of Maharashtra and Lee Seong-ho, South Korean Ambassador to India.
Lotte first entered the Indian market in 2004 through Lotte Wellfood and currently operates two subsidiaries: Lotte India, which specializes in confectionery, and local ice cream company Havmor, which focuses on ice cream. As of 2023, Lotte Wellfood's revenue in India has reached some 270 billion won ($200 million).
The Pune plant marks Lotte Wellfood's first production facility expansion since acquiring Havmor in December 2017.
Spanning 60,000 square meters -- equivalent to the size of eight soccer fields -- the new plant is six times larger than the existing Gujarat plant. Currently operating nine production lines, the Pune plant aims to expand to 16 lines by 2028.
Outfitted with Lotte Wellfood's state-of-the-art automated manufaturing systems, Lotte Wellfood anticipates a year-on-year ice cream sales increase of more than 15 percent.
By capitalizing on such production capacity, Havmor seeks to strengthen its market leadership in western India while utilizing the facility as a launchpad for expansion into southern India. Additionally, Pune's close proximity to major raw material suppliers for ice cream production is expected to enhance cost efficiency. The existing Gujarat plant will focus on supplying key markets in northwestern India.
Havmor is also set to increase production of Lotte-branded products to bolster its competitiveness.
Currently, the Gujarat plant manufactures World Cone, while the Pune plant will commence phased production of Crispy Crunch Ice Bar, Jaws Bar and Watermelon Bar within the year, to supply the Indian market.
In the first half of this year, Lotte India and Havmor will merge to form a unified entity, enhancing the product portfolio and streamlining logistics hubs to drive operational efficiency.
Additionally, Lotte has designated its Haryana plant as the first overseas production base for the Pepero brand, with manufacturing set to commence in the second half of the year.
Lotte Wellfood remains focused on strengthening its global operations and optimizing business portfolio to further enhance corporate value.
Meanwhile, during Shin's visit to India, the chairman reportedly met with leading executives from global corporations, including: Mukesh Ambani, chairman of Reliance Group; Anand Mahindra, chairman of Mahindra Group; and Bill Winters, CEO of Standard Chartered Group, to discuss business strategies and potential collaborations.
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