South Korean food giant Lotte Confectionery is making a strategic move to bolster its presence in India’s ice cream market, as reported by Mint. The company is eyeing an investment of Rs 550 crore over the span of five years to rev up the production of Havmor Ice Cream.
Notably, Lotte had previously acquired the renowned Ahmedabad-based Havmor Ice Cream Ltd. for a whopping Rs 1,020 crore and has since been diligently working on enhancing its facilities, systems, and workforce in alignment with its expansion goals. Shedding light on this, Komal Anand, the Managing Director of Havmor Ice Cream, shared, “We have outlined an investment plan of Rs. 550 crore over the next five years.”
A pivotal aspect of this expansion strategy involves establishing a state-of-the-art manufacturing plant in Maharashtra’s Pune district, which is anticipated to commence operations by June 2024. This Pune facility stands as a cornerstone in the company’s plans for growth within India. Havmor, which presently operates in the Ahmedabad and Faridabad regions, is keen on boosting its production capabilities to meet the surging demand, as its existing capacity falls short. The earmarked investment is expected to facilitate the augmentation of production lines at its existing units.
Anand also affirmed in the Mint report, “This investment encompasses the six new production lines we introduced at our Faridabad facility, in addition to the new lines scheduled to come online at the Pune plant in 2024.” Moreover, the company intends to allocate Rs. 40–50 crore to reinforce its deep-freezing facilities.
Lotte’s plans to expand its distribution network extend beyond its core markets in Gujarat and Rajasthan to target high-growth regions like Maharashtra and South India. Presently, Havmor maintains approximately 70,000 selling points across the country, catering to most urban markets. To service these selling points efficiently, the company relies on 300–400 outsourced refrigerated vehicles equipped with temperature monitoring systems.