New Delhi: South Korean giant Lotte Wellfood is doubling down on India with a bold expansion strategy, bringing its global bestsellers to Indian consumers while aggressively scaling up production and investment. The company, best known for its Choco Pie, is set to launch its wildly popular Pepero chocolate-coated biscuit sticks in India this July.
The move comes as Lotte sees massive potential in India’s snacking and frozen dessert markets. With a ₹500 crore investment already poured into its new Havmor ice cream plant in Pune, the company has an even bigger vision—an additional $300 million (₹2,500 crore) investment plan over the next five years to expand its supply chain, boost manufacturing, and capture a bigger slice of India’s growing snack market.
Pepero’s Big Debut in India
Pepero, which dominates Korea’s snack shelves, will be produced outside Korea for the first time at Lotte’s Haryana facility. The brand is banking on India’s surging K-food and K-pop obsession to drive sales.
“It is the number one branded confectionery snack in Korea, and we will be launching and introducing it to Indian consumers in July,” said Paul Yi, CEO of Lotte Wellfood.
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Currently, Choco Pie is Lotte’s flagship product in India, but the company is eager to diversify. “We are actively exploring other snack categories,” Yi added, hinting at a much broader play in India’s ₹16,000 crore organized snack market.
₹500 Crore Ice Cream Factory & Expansion Plans
Lotte’s Havmor ice cream business is another key focus. In 2017, Lotte acquired Havmor, and since then, it has been working to scale production and distribution across India. The new Pune plant, with an initial annual capacity of 50 million liters, is designed to double production to 100 million liters in the coming years.
Lotte is also pushing Havmor beyond its traditional stronghold in Gujarat, expanding its reach to Bengaluru, Chennai, and other major cities.
“We see tremendous opportunity in India’s ice cream market. Compared to China’s $23 billion industry, India’s is still small, but as the consumer base grows, we expect massive expansion,” Yi noted.
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The $300M Bet on India’s Future
With its three-to-five-year roadmap, Lotte is planning an additional $300 million (₹2,500 crore) investment to scale up manufacturing and logistics. “As we revisit our plans, they will evolve, and my guess is the investment will only go up,” Yi said.
The company is also exploring exports from India, particularly to the Middle East and Africa, while keeping its primary focus on dominating the Indian market.
Currently, Havmor generates $200 million in revenue and holds a 5% share of India’s branded ice cream market, but Lotte aims to significantly grow this figure in the coming years.
Merger and Future Roadmap
Last year, Lotte announced the merger of Lotte India and Havmor Ice Cream into a single entity, streamlining operations for greater efficiency. The process is on track to be completed by March 2025, according to Yi.
With Pepero’s India debut, Havmor’s aggressive expansion, and a multi-billion-rupee investment pipeline, Lotte is making it clear—it’s here to stay, and it’s ready to take on India’s biggest food brands.
