Lotte India's merger with Havmor takes on world's largest market

Lotte India's office in Chennai in the state of Tamil Nadu / Courtesy of Lotte Wellfood

By Ko Dong-hwan

• Published Jul 2, 2025 3:03 PM KST

Krunch, Pepero attract local consumers

Lotte Wellfood said Wednesday it has completed the merger of its two Indian subsidiaries — Lotte India and Havmor Ice Cream — in a move expected to serve as a stepping stone for the confectionery and food arm of Lotte Group to accelerate its "One India" strategy in the world’s most populous nation.

The consolidation was carried out in the form of Lotte India absorbing Havmor.

Havmor, one of India’s major ice cream brands, was acquired by Lotte Wellfood in 2017. Despite the merger, Havmor will continue to operate as a standalone brand, maintaining its ice cream business, while complementing Lotte India’s Korean ice cream and snack manufacturing operations with enhanced capabilities and brand strength, according to Lotte.

With the merger, Lotte Wellfood seeks to expand its reach across India more efficiently. Since its establishment in 2004, Lotte India has operated primarily in Chennai, Tamil Nadu, in the south, and in the state of Haryana in the north. Havmor, founded in 1944, is based in the western state of Gujarat, where it has a strong regional presence.

The merger enables Lotte India to gain unified control over the manufacturing and logistics resources of both companies, improving its ability to serve southern, northern and western regions of India.

Lotte Wellfood said that Lotte India, by maximizing synergy from the merger, now aims to post annual sales of 1 trillion won ($734 million) by 2032.

“With the merger, our operation targeting the Indian market has taken a major step with the new annual sales goal in our crosshairs. By combining the strengths of the two companies, we will grow Lotte India to the country’s best confectionary company,” a Lotte Wellfood official said.

In February, before the merger, Lotte India invested 70 billion won, opening a new ice cream manufacturing plant in western city of Pune. The factory increased the company’s market competitiveness just as the country was entering high season for ice cream demand. Among the plant’s products is Krunch, a Korean ice cream brand first introduced by Lotte Wellfood in 1983, which sold over 1 million bars in three months in India, raising the popularity of Korean ice cream among Indian consumers.

Lotte India, headquartered in Chennai, expects to complete construction of a new manufacturing plant in India later this year. The snack factory, located in Haryana province and built with an investment of 33 billion won, will produce Pepero — a long-established Korean confectionery brand first introduced in 1983. This marks the first time Lotte Wellfood will manufacture Pepero outside of Korea.

Lotte India has seen Choco Pie, another long-standing Korean dessert brand, become a hit in the Indian market. The product’s popularity has led to its production at two plants, located in Chennai and Haryana.

Lotte India aims to achieve 15 percent business growth this year compared to last year. In the first quarter of 2025, the company posted sales of 80.2 billion won, marking a 24 percent year-on-year increase. Last year, it recorded total sales of 290.5 billion won.