"Lotte India and Havmor to Merge, Investing ₹400 Crore in New Ice-Cream Factory for Havmor"

In a strategic move aimed at bolstering its presence in India, South Korea-based confectionery giant Lotte Wellfood has announced the merger of its Indian subsidiaries, Lotte India and Havmor Ice Cream, to create a unified entity. This merger, part of Lotte's “One India” initiative, is designed to accelerate growth in the Indian confectionery and ice cream markets. The merger is expected to be finalized by the second half of this year.

As part of the integration, Lotte Wellfood plans to invest ₹400 crore in a new ice-cream production facility for Havmor, set to be located in Pune, Maharashtra. This investment aims to extend Havmor's reach from western to south-central India.

The newly formed entity will target annual sales of approximately ₹6,000 crore through a series of strategic investments to drive future growth. Chang-Yeop Lee, CEO of Lotte Wellfood, emphasized that the “One India” strategy is intended to enhance Lotte’s brand presence and sustain growth in the rapidly expanding Indian market. He highlighted that the merger will improve management efficiency and maximize synergy.The boards of Lotte India and Havmor approved the merger plan on July 29. The merger will see Havmor Ice Cream integrate with Lotte India while both brands maintain their distinct identities to ensure smooth operations. The merger is anticipated to be completed by the latter half of this year, with the integrated entity expected to launch early next year.

Additionally, Lotte India is investing over ₹210 crore to establish a new production base for Lotte Pepero at its Haryana factory, with operations slated to begin in the second half of next year. The company plans to introduce localized versions of Lotte Pepero tailored to local preferences and climate conditions.

Lotte Wellfood entered the Indian market in 2004 by acquiring and rebranding Parrys as Lotte India, and further expanded its footprint with the acquisition of Havmor Ice Cream in December 2017.

HBL