Lotte Wellfood unites India units to streamline operations

Lotte Wellfood, the confectionery arm of Lotte Group, said Wednesday it has completed the merger of its two Indian subsidiaries, unifying its operations in a market central to its future growth.

The merger between Lotte India and Havmor Ice Cream follows both companies’ approval last July of an acquisition-based integration, with Lotte India absorbing Havmor in a bid to create stronger synergies between the two units.

Lotte Wellfood acquired Havmor Ice Cream in 2017 as part of its strategy to expand in the Indian market.

“With the launch of the integrated entity, we will pursue full-fledged growth to achieve annual sales of 1 trillion won ($735 million) in India by 2032,” a Lotte Wellfood official said.

Lotte Wellfood’s sales in India climbed 24 percent to 80.2 billion won in the first quarter. Last year, its annual sales totaled 290.5 billion won, up 8 percent from 269 billion won in 2023.

The integration broadens Lotte’s geographical footprint in India, combining Lotte India’s operations in the south and north with Havmor’s presence in the west. The company said it also expects further efficiencies from consolidating logistics and production bases.

Lotte Wellfood is increasing investment to scale up production and bring more of its brands to the Indian market.

In February, its new frozen dessert plant in Pune, in the western state of Maharashtra, came online, enabling the launch of its Korean ice cream product, Krunch, which sold over one million units within three months.

Construction is also underway on Lotte’s first overseas production facility for its chocolate-dipped sticks, Pepero, in the northwestern state of Haryana. Operations are scheduled to begin in the second half of this year.