Completion of Havmor Absorption Merger... Launch of Integrated Indian Corporation
Securing Coverage Across Northern, Southern, and Western Regions
Lotte Wellfood announced on July 2 that it has completed the merger process of its Indian subsidiaries, 'Lotte India' and 'Havmor Ice Cream.' The company plans to accelerate its 'ONE INDIA' strategy through the launch of the integrated corporation.
This merger was approved by the boards of directors of both companies in July last year and was carried out as an absorption-type merger, with Lotte India absorbing Havmor. Lotte Wellfood aims to enhance management efficiency and maximize synergy between the two companies through this merger. The company also plans to continue growing the Havmor Ice Cream brand, which has been absorbed through the merger. Lotte India has set a target of achieving annual sales of 1 trillion KRW by 2032.
Lotte Wellfood expects to achieve external growth by expanding its regional coverage. Previously, Lotte India operated mainly in southern Chennai and northern Haryana, while Havmor focused on western Gujarat. With this integration, the company now has coverage across the northern, southern, and western regions. Operational efficiency is also anticipated through the integration of logistics and production bases.
The company is also making aggressive large-scale investments to expand production capacity and introduce Lotte brands. The new Pune ice cream plant, which received an investment of 70 billion KRW, began full-scale operations in February, significantly boosting Lotte's competitiveness during India's peak ice cream season. 'Pig Bar' (locally branded as Krunch), launched in the Indian market through the new Pune plant, achieved cumulative sales of 1 million units within just three months of its release.
The establishment of the first overseas production base for 'Pepero' at the Haryana plant, with an investment of approximately 33 billion KRW, is also underway, with operations targeted to begin in the second half of this year. Lotte India aims for 15% growth this year through the operation of the new Pune plant and the introduction of Pepero. Sales in India for the first quarter of this year reached 80.2 billion KRW, representing an increase of about 24% compared to the same period last year. Total sales for last year were 290.5 billion KRW.
A Lotte Wellfood representative stated, "With the launch of the integrated corporation, we will begin full-scale growth toward achieving annual sales of 1 trillion KRW in the Indian market," and added, "By combining the strengths of both companies, we aim to become India's leading comprehensive confectionery company."
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