Lotte Confectionery was the first Korean food and beverage firm to enter the Indian market back in 2004. It built choco-pie factories in Chennai and Delhi and, last year, it reportedly had a 90% share in the Indian choco-pie market.
According to the Yonhap News Agency, Lotte posted 70 billion won (about US$64.4m) in revenue in India last year. This deal will aid Lotte Confectionery’s expansion from northwest India, across the entire country.
Founded in 1944, Havmor now has around 160 ice cream products spanning ice cream tubs, ice cream rolls, ice cream cones and ice cream and ice lolly sticks, etc. It has two production facilities in Ahmedabad and Faridabad.
The firm says: “We are now available across more than 40,000 outlets across Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Punjab, Goa, Delhi, Chattisgarh, Uttar Pradesh, Karnataka, Haryana and Telangana.”
“We have a capacity of producing close to 200,000 litres of ice-cream per day."
Take it national
Just in March this year, Havmor had announced its plans to invest about Rs200 crore (about US$31m) to expand its operations in North and South India over the next three years, as well as the setting up of a third manufacturing facility.
According to Lotte Confectionery, Havmor is expected to bring in 100 billion won (about US$92m) in sales this year.
Lotte’s decision to acquire Havmor and its expansion plans for the subcontinent were recently revealed after a board of directors meeting held on Nov 23.
Havmors’ managing director Ankit Chona reportedly commented, if someone were to “take the business and make it grow much faster and take it to the national level”, then they are “happy to look at the brand going into such suitable hands”.
Havmor’s financial advisor on the deal was KPMG, alongside Veritas Legal and Dhruva Tax consultants.
A statement from Havmor said that it will continue to operate its chain of restaurants and eateries across Gujarat as well as its signature brand and concept café, Huber & Holly.