Lotte India, Havmor announce merger; aim to achieve sales 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 establish an integrated entity.
With this merger, the integrated entity – One India – will aim to achieve annual sales of Rs 6,000 crore over six years from the time the amalgamation process is completed. The merger plan was approved by the board of directors of Lotte India and Havmor each on 29 July and is expected to be completed by the second half of this year with the new integrated entity set to launch early next year.
As its first investment under the 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.
This expansion will help extend the company’s regional coverage from the west to the south-central regions of India.
“With the launch of One India, we aim to solidify Lotte’s brand presence 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, chief executive officer, Lotte Wellfood.
“The merger will take the form of Havmor Ice Cream integrating with Lotte India and both brands will continue to retain their individual identities for seamless operations,” stated a release by the company.
“Following Lotte Choco Pie, the company plans to develop and introduce localised versions of Lotte Pepero that reflect local eating habits and climate conditions,” it added.
First Published: Aug 02 2024 | 8:19 PM IST