Korean confectioner Lotte plans to accelerate its Choco Pie brand in India with a third factory.
The planned 24,500 m2 factory in northern state of Haryana Delhi will produce Lotte’s marshmallow snack cake brand Choco Pie.
Lotte acquired a factory in Nellikuppam when it bought a controlling stake in Parry’ Confectionery from the Murugappa Group in 2004 and built another facility in Chennai in 2009. The new plant is expected to be complete in July 2015.
Choco Pie growth
Choco Pie accounts for 32% of Lotte’s sales mix in India, which comes mainly from candy. The company previously said in its second half results in November that it would aim to grow Choco Pie sales in India and had hinted at further production capabilities.
Lotte grew above the overall confectionery market in India from 2010 to 2012 to reach KRW 75 billion ($70.4m) in 2012 sales. The company’s India sales account for 5% of its total global sales.
The firm said in its second half results that it aimed to grow Indian sales to KRW 0.6 trillion ($562.9m) by 2018, representing a 44.5% CAGR from 2013.
Ambitions for Asia leadership
Lotte previously announced that it was aiming to become Asia’s leading confectionery firm by 2018 with China integral to its plans.
Its current overseas operation is expected to total KRW 0.6 trillion ($565.7m) in 2013 and Lotte is projecting that overseas sales will reach KRW 3.6 trillion ($3.4bn) by 2018 – a five-year compound annual growth rate of 42.9%.