Lotte Wellfood to Invest $300 Million in India for Capacity and Supply Chain Expansion.

Lotte Wellfood, the South Korean confectionery giant, inaugurated one of its largest ice cream manufacturing facilities in Pune recently, with an annual production capacity of 50 million litres.

The parent company of Havmor Ice Cream India has invested ₹500 crore in the new facility and plans to invest an additional $300 million over the next three to five years to expand its capacity and strengthen its supply chain in India, CEO Paul Yi announced during a media roundtable.

Lotte Wellfood is also merging its Indian subsidiaries—Lotte India and Havmor Ice Cream India—aiming to reach ₹6,000 crore in sales. The merger, announced in August 2024, is expected to be completed by March 2025. Currently, Havmor Ice Cream India generates approximately $200 million in revenue, holding a 5% share of the Indian ice cream market, while Lotte India’s revenue stands at $150 million.

In addition to expanding its ice cream business, Lotte Wellfood is set to introduce a range of confectionery products in India. The company will launch its flagship South Korean snack, Lotte Peppero, in July, marking the first time the product will be manufactured outside South Korea. Produced in Haryana, the chocolate-coated biscuit sticks will be priced between ₹30 and ₹70.

Havmor Ice Cream India is also gearing up for new product innovations. Managing Director Komal Anand announced plans to launch India’s first four-layered ice cream using Lotte’s advanced automated production and packaging technology before the summer season. The brand will also introduce special IPL-themed packs as part of its partnership with the Gujarat Titans, with new offerings hitting the market in February.

The Pune plant has the potential to double its capacity to 100 million litres in the coming years. Yi highlighted expansion plans beyond Gujarat, with distribution networks strengthening in Bengaluru and Chennai. Additionally, the company is exploring exports from its Pune facility to the Middle East and Africa.

Yi emphasized the significant growth potential of India’s ice cream market, currently valued at $3 billion, compared to China’s $23 billion market. “As India’s consumer base grows and evolves, it will certainly approach the Chinese market size,” he noted.

BS