South Korea’s Lotte Confectionery is investing US$56.9 mn to build an ice-cream factory in India. The cash will be funnelled into its subsidiary Havmor Ice Cream in India for a 60,000 square-meter facility in Pune, according to Yonhap News Agency, South Korea’s official news service. The project is expected to create around 1,000 jobs.
Lotte Confectionery, part of the Lotte Group conglomerate, acquired Havmor Ice Cream in 2017 for the equivalent of $157.8m. The ice-cream business is based in the city of Ahmedabad. At the time, the deal for family-owned Havmor Ice Cream marked the South Korean firm’s entry into growing market of ice cream in India.
Komal Anand, managing director of Havmor, said: “Lotte sees India as a strategic market, and this investment decision demonstrates the confidence that the group has in the growth opportunity India has to offer. Revolutionising the Indian palate with lip-smacking options that satisfy consumer demand has been at the centre of our initiative.”
“First-ever facility for ice cream in India built with Korean expertise”
Choi, chief globalisation officer at Lotte Confectionery Korea, added: “India is an important market for Lotte. We are very excited to announce our first-ever facility for ice cream in India built with Korean expertise in manufacturing, supply chain metrics and processing in India. The new plant will be instrumental in strengthening and growing the brand’s reach in India.”
Havmor Ice Cream operates 216 retail stores in India and supplies the Lotte Confectionery ice-cream brands Snow Ice and World Cone, according to Yonhap. The Pune facility will become the third factory for the South Korean company in India, the news service said.
The project will be fully operational in 2024 and is expected to create around 1,000 jobs.
Last year, Lotte Confectionery merged with Lotte Foods, a food and dairy products maker of Lotte Group, to improve profitability and streamline overlapping business areas. Lotte Confectionery produces the Xylitol chewing gum brand but also supplies sweets, chocolate, biscuits and snacks.