Lotte chief visits India as firm pushes South Asian expansion

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Lotte chief visits India as firm pushes South Asian expansion

Confectionary firm Lotte Wellfood showcased products such as its Pepero chocolate biscuits at a booth at SIAL Paris on Oct. 21, 2024. [YONHAP]

Confectionary firm Lotte Wellfood showcased products such as its Pepero chocolate biscuits at a booth at SIAL Paris on Oct. 21, 2024. [YONHAP]

 
Lotte Chairman Shin Dong-bin is on a trip to India, reportedly with the head of the group’s food division for on-site management. The South Asian country is one of the main markets Lotte’s confectionary business has been increasing investments in, including in production facilities for its Choco Pie and Pepero products.
 
The chairman left for India alongside Lee Young-gu, the CEO of Lotte’s food division headquarters and co-CEO and vice chairman of food and beverage (F&B) arm Lotte Wellfood, Newsis reported Monday. A spokesperson for Lotte Corporation confirmed to the Korea JoongAng Daily Tuesday that Shin had left for a business trip to India but declined to comment on his schedule or the reason for his visit.
 

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As the most populous country in the world with more than 1.45 billion people, India is an attractive market for food manufacturers, including Lotte. Japan-based consultancy GourmetPro valued the country’s confectionary market at $6.21 billion in 2024 with an expected annual growth rate of 5.47 percent through 2029.
 
Lotte Wellfood announced in July of last year the merger of subsidiaries Lotte India — a confectionary firm previously named Parrys Confectionery, which Lotte acquired in 2004, marking its entry into the Indian market — and Havmor Ice Cream. Production lines for Havmor Ice Cream and Choco Pies have continuously been added to different regions of India.
 
Indian logistics are more localized than they are in Korea due to the former's large geographical size; Korea's smaller area allows for faster shipping across the country, a spokesperson for Lotte Wellfood told the JoongAng Daily.
 
Lotte Wellfood co-CEO Paul Yi, right, examines Lotte India's production lines for Choco Pie at the firm's factory in Haryana, India. [LOTTE WELLFOOD]

Lotte Wellfood co-CEO Paul Yi, right, examines Lotte India's production lines for Choco Pie at the firm's factory in Haryana, India. [LOTTE WELLFOOD]

 
The firm has also invested 2.1 billion rupees ($24.1 million) in Haryana, India, for its first overseas Pepero factory, with operations set to start in the second half of this year. Shin urged executives during trip to Europe last September to make the chocolate biscuit into a “megabrand” that could rake in 1 trillion won ($684 million) in overseas sales.
 
Choco Pie and Pepero products for the Indian market are made without animal-derived ingredients such as gelatin and eggs, Lotte Wellfood’s spokesperson said. This both adheres to Halal dietary restrictions and caters to India's large vegan and vegetarian community.
 
Shin is expected to visit Lotte Wellfood’s production facilities in India, Newsis reported. The chairman had studied possible future entry into the African market during his visit to Ghana for cacao bean purchases in October.
 

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BY KIM JU-YEON [[email protected]]
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