Lotte India and Havmor announce merger; target turnover of Rs 6K cr
South Korean confectionery company Lotte Wellfood on Friday announced the merger of its Indian subsidiaries Lotte India and Havmor Ice Cream to create an integrated entity.
With this merger, the integrated entity – One India – will target an annual turnover of Rs 6,000 crore over six years from the completion of the merger process. The merger plan was approved by the board of directors of Lotte India and Havmor on July 29 and is expected to be completed in the second half of this year, with the new integrated entity starting operations early next year.
As the first investment under this initiative, Lotte Wellfood also announced plans to set up a new ice cream production facility for Havmor with an investment of Rs 400 crore in Pune, Maharashtra.
With this expansion, the company extends its regional coverage from the west to the south-central regions of India.
“With the launch of One India, we aim to strengthen Lotte’s brand awareness and secure growth momentum in the Indian market. Our long-term vision includes substantial investments in India, a key emerging market with the world’s largest population and robust economic growth,” said Chang-Yeop Lee, CEO of Lotte Wellfood.
“The merger will take the form of integration of Havmor Ice Cream with Lotte India and both brands will retain their individual identities for seamless operations,” a company press release said.
“After Lotte Choco Pie, the company plans to develop and introduce local versions of Lotte Pepero that reflect local food habits and climate conditions,” it added.
First print: 02 Aug 2024 | 20:19 IST