Pune, Maharashtra – February 6, 2025 – LOTTE has inaugurated a state-of-the-art ice cream manufacturing facility in Pune, marking a significant milestone in its expansion strategy for the Indian market. Spanning 60,000 square meters, the facility underscores the South Korean multinational’s commitment to long-term growth, innovation, and increasing its retail presence in India.
The grand opening was attended by Maharashtra’s Chief Minister, Shri Devendra Fadnavis, along with Dong Bin Shin, Chairman of LOTTE Group, and other key dignitaries. This investment not only strengthens LOTTE’s ice cream business but also serves as a platform for its broader ambitions in India’s fast-growing snack segment.
Enhancing Production Capacity & Efficiency
The new Pune plant, built with a ₹500 crore investment, boasts an annual production capacity of 50 million liters, with nine production lines currently operational and plans to scale up to sixteen. Over time, its capacity can expand to 100 million liters to cater to surging demand, particularly during India’s intense summer season.
The facility features high-speed machinery and automated robotic systems for secondary packaging, ensuring efficiency and superior product quality. Additionally, it is set to generate over 1,000 jobs in the next two years, contributing significantly to the local economy.
LOTTE’s Vision: Beyond Ice Cream into Snacks & Confectionery
Speaking at the launch, Dong Bin Shin, Chairman of LOTTE Group, emphasized India’s growing importance in the company’s global portfolio:
“We are proud to inaugurate this cutting-edge facility, which represents a key milestone in LOTTE’s global journey. India is a crucial market for us, and this plant will play a vital role in making Havmor the most loved ice cream brand in the country.”
However, LOTTE’s ambitions extend beyond ice cream. According to Paul Chang Yi, CEO of LOTTE Wellfood Co. Ltd., the company is set to enter the Indian snack segment, leveraging the popularity of K-food and K-pop culture. As part of this strategy, LOTTE will launch its iconic ‘Pepero’ chocolate-coated biscuit sticks in India by July 2025.
“Pepero is the number one branded confectionery snack in Korea, and for the first time, we will produce it outside Korea in our Haryana plant,” Yi stated.
LOTTE, which already manufactures Choco Pie in India, is exploring additional snack categories to expand its presence in the high-growth Indian market.
Strengthening Market Presence & Expanding Distribution
Havmor Ice Cream, acquired by LOTTE in 2017, currently holds a 5% share of India’s branded ice cream market with annual revenues of approximately $200 million. With the Pune plant’s increased capacity, LOTTE aims to expand Havmor’s distribution beyond Gujarat and penetrate deeper into southern markets like Bengaluru and Chennai.
Additionally, the new plant will support LOTTE’s export ambitions, with the Middle East and Africa identified as key markets. However, Yi reaffirmed that the primary focus remains on India, which offers huge untapped potential for growth.
“India’s per capita ice cream consumption is still low compared to other Asian markets, which presents a tremendous opportunity for expansion. As Indian consumers evolve, we expect the market to scale up, similar to what we’ve seen in China, where the ice cream market is valued at $23 billion,” Yi explained.
Future Investments & Business Consolidation
LOTTE has a long-term roadmap for its Indian business, with plans to invest an additional $300 million over the next three to five years in capacity expansion and supply chain improvements.
In a strategic move to streamline operations, LOTTE announced in August 2024 the merger of Lotte India and Havmor Ice Cream into a single entity. Yi confirmed that the integration is on track for completion by March 2025, aligning with the company’s goal of enhancing operational efficiency and market competitiveness.
Conclusion: A New Era for LOTTE in India
With major investments in ice cream, plans for expansion into snacks, and a strong focus on localized production, LOTTE is poised to become a dominant player in India’s food and confectionery space. The Pune facility is not just a manufacturing hub, but a launchpad for innovation and growth, setting the stage for LOTTE’s next phase of expansion in one of the world’s fastest-growing consumer markets.
