Lotte Wellfood has announced the official completion of the merger between its Indian subsidiary, Lotte India, and its ice cream brand, Havmor Ice Cream, marking a strategic step to enhance its operations in the Indian market. The company confirmed on July 2 that the integration process has been finalized, initiating the full-fledged implementation of the ‘ONE INDIA’ strategy.
The merger, approved by the boards of both companies last July, was executed through Lotte India absorbing Havmor Ice Cream. Despite the merger, Havmor will continue to operate as an independent brand, further strengthening its position as a well-recognized ice cream brand across India.
Through this corporate consolidation, Lotte Wellfood aims to improve management efficiency and maximize synergies between the two entities. The company has set a goal to achieve an annual revenue of 1 trillion KRW in India by 2032.
A key benefit of the merger is the expansion of regional coverage. Lotte India has been primarily operating in the southern (Chennai) and northern (Haryana) regions, while Havmor has focused on the western region (Gujarat). The integration is expected to facilitate the development of a nationwide distribution network, along with more efficient logistics and production operations.
Lotte Wellfood is also actively investing in manufacturing infrastructure and product line expansion. In February, the newly built Pune ice cream factory, invested with 70 billion KRW, commenced operations. The ‘Krunch’ produced there quickly gained popularity, surpassing 1 million units in sales within three months of its launch.
Additionally, about 33 billion KRW has been allocated to establish Havmor’s first overseas production line in Haryana. Scheduled to begin operations this second half, the new line is expected to serve as a foundation for expanding the confectionery product portfolio.
Currently, Lotte India aims for over 15% sales growth this year, supported by increased production capacity and diversified branding. In the first quarter of 2024, sales reached 80.2 billion KRW, a 24% increase compared to the same period last year. The company’s total revenue in 2023 stood at 290.5 billion KRW.
A Lotte Wellfood representative stated, “The establishment of the fully integrated company marks a milestone beyond mere organizational restructuring. It signifies our commitment to launching full-scale growth in India,” adding, “By combining localization strategies with Lotte’s brand power, we aim to become a leading comprehensive confectionery company in India.”
