South Korean confectionery giant Lotte Wellfood recently announced the merger of its Indian subsidiaries Lotte India and Havmor Ice Cream to establish an integrated entity in India in orde to boost its brand awareness. Lotte aims to rake in $722.4 million in annual sales. Lotte Wellfood has decided to combine the two Indian units to improve their operational efficiency and optimize synergy.
The move is part of Lotte’s strategic initiative, One India, that aims to enhance Lotte’s brand presence and secure growth momentum in the Indian Confectionery and ice cream market.
The merger is expected to be completed by the second half of this year, with the new integrated entity set to launch in early 2025. Lotte Wellfood also announced its plans to set up a new ice-cream production facility for Havmor with an investment of Rs 400 crore in Pune, Maharashtra to expand its reach.
“With this merger, the integrated entity will aim to achieve an annual sales of about ₹6,000 crore through a series of investments and secure future growth drivers,” the company said in an official statement added.
Chang-Yeop Lee, CEO of Lotte Wellfood, said, “With the launch of One India strategy, we aim to solidify Lotte’s brand presence and secure growth momentum in the Indian market. Our long-term vision includes substantial investments in India, a key emerging market with the world’s largest population and robust economic growth. The merger of our Indian subsidiaries is a strategic move to enhance management efficiency and maximize synergy.”
The focus will also be on strengthening the local Lotte brand through diversified product portfolios. Both the brands will continue to retain the individual identities for seamless operations.
The maker of the popular Lotte Choco Pie, also added that it plans to develop and introduce localized versions of Lotte Pepero that reflect local eating habits and climate conditions.
Lotte Wellfood entered the Indian market in 2004 by acquiring Parrys, an Indian confectionery company, and renaming it Lotte India. In December 2017, Lotte acquired Havmor Ice Cream,.