Lotte to Invest Rs. 550 Crores in Expanding its Ice Cream Business in India

South Korean food industry giant Lotte Confectionary is making a significant move to further establish itself in India's ice cream market. According to a recent report by Mint, Lotte is considering a substantial investment of Rs. 550 crore over the course of five years to enhance the production capabilities of Havmor Ice Cream, which it acquired for Rs 1,020 crore.

Since the acquisition of Ahmedabad-based Havmor Ice Cream Ltd, Lotte has been diligently working on upgrading various aspects of the company, including facilities and staff. Managing Director of Havmor Ice Cream, Komal Anand, shared insights on this expansion plan, stating, "We have planned investments of Rs 550 crore over the next five years."

A key component of this expansion strategy is the development of a cutting-edge manufacturing plant located in Maharashtra's Pune district. This state-of-the-art facility is expected to become operational by June 2024 and plays a pivotal role in Lotte's expansion ambitions in India. Havmor currently operates facilities in Ahmedabad and Faridabad and is scaling up its capacity to meet the surging demand, which has rendered its current production capacity insufficient. The planned investment aims to bolster production lines at the existing units.

Komal Anand further elaborated, "This investment covers the six new lines we put up in our Faridabad facility as well as the new lines that will come up in the Pune plant in 2024." Additionally, the company intends to allocate Rs. 40-50 crore to strengthen its deep-freezing facilities.

Furthermore, the report outlined Lotte's plans to expand its distribution network. Havmor aims to strengthen its presence in regions beyond its current key markets such as Gujarat and Rajasthan, focusing on high-growth areas like Maharashtra and South India.

Presently, Havmor serves approximately 70,000 selling points across India, predominantly in urban markets. The company efficiently caters to these selling points through the use of 300-400 outsourced refrigerated vehicles equipped with temperature monitoring systems, ensuring the quality of its ice cream products during transportation.

BS