Lotte Wellfood, a leading South Korean confectionery company, has announced plans to invest $300 million in India over the next three to five years. The company aims to enhance its production capacity, strengthen supply chain infrastructure, and introduce new products to the Indian market. This significant investment reflects Lotte Wellfood’s commitment to expanding its footprint in one of the world’s fastest-growing consumer markets.
New Ice Cream Manufacturing Facility in Pune
Lotte Wellfood has inaugurated a new ice cream manufacturing facility in Pune, Maharashtra, with an annual production capacity of 50 million litres. The company has invested Rs 500 crore in this plant, making it one of its largest manufacturing units worldwide. This strategic expansion will help Lotte Wellfood meet the rising demand for premium ice cream products in India. Additionally, it will enable the company to strengthen its presence in key markets across the country.
Merger of Indian Subsidiaries to Boost Market Presence
In August 2024, Lotte Wellfood unveiled its plan to merge its two Indian subsidiaries, Lotte India and Havmor Ice Cream India. The company aims to complete this merger by March 2025, creating a stronger and more competitive entity. The newly merged business expects to generate combined sales of Rs 6,000 crore, positioning Lotte Wellfood as a major player in the Indian confectionery and ice cream industry.
Currently, Havmor Ice Cream India generates annual revenues of approximately $200 million and holds a 5% share of the Indian ice cream market. The brand enjoys strong customer loyalty, particularly in Gujarat and central India. Meanwhile, Lotte India contributes $150 million in revenue, further strengthening the company’s foothold in the country. By consolidating operations, Lotte Wellfood seeks to streamline its business, maximize efficiencies, and accelerate growth.
Introduction of Lotte Pepero to the Indian Market
As part of its expansion strategy, Lotte Wellfood plans to introduce its popular South Korean snack, Lotte Pepero, to the Indian market by July 2025. This beloved biscuit stick, coated in chocolate and other delicious toppings, has gained a massive following in several countries. Notably, the company will produce Lotte Pepero in Haryana, marking the first time it is being manufactured outside South Korea.
The decision to localize production underscores Lotte Wellfood’s long-term vision for India. By manufacturing within the country, the company aims to reduce costs, ensure consistent supply, and cater to local taste preferences. The product will be available in various price segments, ranging from Rs 30 to Rs 70, making it accessible to a broad consumer base.
Strengthening Supply Chain and Expanding Distribution
Lotte Wellfood’s investment will not only increase production capacity but also enhance its supply chain and distribution network. With India’s growing demand for confectionery and frozen desserts, the company recognizes the need for a robust supply chain infrastructure. By improving logistics and expanding distribution channels, Lotte Wellfood intends to reach more consumers across urban and rural markets.
Furthermore, the company’s focus on localized manufacturing and sourcing will help streamline operations, reduce import costs, and improve efficiency. This approach aligns with India’s “Make in India” initiative, supporting domestic production while boosting employment opportunities.
A Bold Step Towards Market Leadership
Lotte Wellfood’s $300 million investment highlights its confidence in India’s rapidly expanding food and beverage sector. By establishing a major production facility, merging its subsidiaries, and launching new products, the company is positioning itself for long-term success. These strategic moves will not only strengthen its market presence but also enhance its competitive edge against established industry players.
As India’s demand for high-quality confectionery and frozen desserts continues to rise, Lotte Wellfood is well-equipped to capitalize on these opportunities. With a clear focus on innovation, localization, and supply chain efficiency, the company is set to become a dominant force in India’s food industry.
