Lotte Confectionery, a company based in South Korea, plans to invest 450 crore rupees in its Indian subsidiary, Havmor Ice Cream, over the next five years. A significant portion of this investment will go towards building a new plant to increase manufacturing capacity, according to a high-ranking company representative.
The investment from Lotte Confectionery will be used to establish a new production facility in the Talegaon township of the Maharashtra Industrial Development Corporation (MIDC). According to the company, the facility will be operational in 2024 and will create jobs for 1,000 people. Additionally, the facility will be the first in India to utilize Korean technology, as stated in the company’s statement.
The new production facility in Talegaon is expected to be operational by the fourth quarter of 2024. It will manufacture Lotte’s premium range of ice cream.
Lotte Confectionery, which purchased Havmor Ice Cream for 1,000 crore rupees in December 2017, has positioned the Indian brand in the mass affordable segment, while it has positioned the Lotte brand ice cream in a slightly higher mid-premium range as part of its marketing strategy.
The executive of the company said that the investment in the new plant at Talegaon is a large one and it will use the technology and design from Lotte. The company will also make capital investments and create infrastructure of freezers for further expansion in the consumer market. He also added that the investment would be funded internally.
Currently, Lotte sells World Cone in the Indian market, which is its top-selling global ice cream. According to the company’s executive Anand, Lotte World Cone was introduced in 2021 and the acceptance of the product has exceeded expectations. The company also plans to introduce another product from its global portfolio in the coming year.
Anand stated that Havmor is a rapidly expanding ice cream brand in India, with a presence in 20 states and 216 ice cream shops. He added that they plan to expand their reach and focus on urban markets in tier 1 and II cities.
This statement is discussing Lotte’s plans to expand their ice cream business in India by building a new facility in Talegaon. The facility will be large, covering 60,000 square meters, and will significantly increase their production capacity to meet future demand. It will also create jobs for over 1,000 people. This new facility will be in addition to their existing manufacturing units in Ahmedabad and Faridabad