Lotte Confectionery wants extra scoop of Indian ice cream market

Industry

Published: 18 Jan. 2023, 16:11

Lotte Confectionery wants extra scoop of Indian ice cream market

A rendition of Lotte Confectionery's new ice cream plant near Pune, Maharashtra. [LOTTE CONFECTIONERY]

Lotte Confectionery will invest 70 billion won ($56.3 million) over the next five years in Havmor Ice Cream, its Indian ice cream subsidiary.

With the funds, a 60,000-square-meter ice cream plant will be built at the Maharashtra Industrial Development Corporation's Talegaon site near Pune, Maharashtra.

Its first investment since Lotte fully acquired Havmor Ice Cream for 167.2 billion won in December 2017.

Havmor Ice Cream runs a total of 216 stores in India and sells two of Lotte Confectionery’s ice cream brands, World Cone and Snow Ice, which have been rebranded as Sippables in India.

The Indian ice cream market has been rapidly growing, which is evident in Lotte’s third quarter 2022 earnings. In the Indian market alone, revenue of 35.6 billion won was generated, a 24 percent increase compared to 2021’s third quarter.

Lotte Confectionery's global sales have been on the rise compared to the domestic market, up 2 percent in the third quarter on year to 505.1 billion won.

Growth was fastest in India, Kazakhstan and Russia.

The Talegaon plant is expected lead to a significant increase in its production capacity to meet the growing demand, as it will be equipped with the latest automated manufacturing technologies. It will also create 1,000 new jobs.

The facility is Havmor Ice Cream’s third factory, It existing units are in Ahmedabad and Faridabad.

“The Indian market has high growth potential because ice cream consumption per person is still relatively low when compared to other Asian countries,” said Havmor Ice Cream’s managing director Komal Anand.

“India is an essential market for Lotte, and we’re excited to build an ice cream factory in India equipped with Korea’s manufacturing technology,” said executive director Choi Myung-lim of global business division of Lotte Confectionery. “The new factory will become a critical stepping stone to strengthen and develop the company’s brand in India.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]