Lotte Wellfood Fortifies Indian Market Presence with Strategic Expansion

In a strategic move, Lotte Wellfood announces its ambitious growth plans for the Indian market, unveiling a new production line in Haryana dedicated to its globally renowned confectionery delight, Lotte Pepero. This milestone initiative marks the first exclusive Pepero production line established outside of Korea by Lotte Wellfood. Set to be operational by mid-2025, the cutting-edge facility will strategically align with the existing factory in Haryana, presently focused on Lotte Choco Pie production, and boasts a committed investment exceeding Rs 200 crore.

With automated production lines at its core, the upcoming facility is positioned to meet the escalating global demand for Lotte Pepero. Beyond logistical optimization, this strategic expansion underscores Lotte Wellfood's commitment to adapting swiftly to the evolving tastes of consumers worldwide.

The newly established facility, designed to cater to global export requirements, will also facilitate the introduction of Original and Crunky Pepero products to the Indian market. Lotte Wellfood envisions positioning Lotte Pepero as a premium brand in the local market, building upon the success trajectory of Lotte Choco Pie. The initial focus will target the premium market, encompassing large retail formats and the e-commerce channel, with plans to extend to smaller traditional channels in subsequent phases.

Lee Chang-yeop, CEO of Lotte Wellfood, expressed, "We are actively expanding our investments in the Indian market, recognizing its substantial growth potential. Following the success of Lotte Choco Pie in India, the introduction of Lotte Pepero aims to fortify Lotte's brand strength and extend sales in the Indian market. We are committed to creating locally tailored Lotte Pepero products, resonating with regional food culture and climate-specific dining preferences. This investment is a strategic move to bolster Lotte's position in India, a country with a confectionery market valued at approximately 27000 Cr. In 2023, Lotte India's sales performance reached Rs. 654 Crore, with a target of more than 20 percent growth in 2024."

Chocolate holds a significant place among Indian consumers, often becoming an essential item on their shopping lists. In-depth research reveals that Lotte Pepero garnered positive feedback from 90 percent of Indian consumers, both in terms of concept and taste. The innovative product differentiation, especially the chocolate stick snacks, received favorable responses.

As part of its commitment to India's diverse market, Havmor Ice Cream, a 100 percent subsidiary of Lotte Wellfood and a leading ice cream brand in western India, plans a capital investment of Rs 436 crore for a new state-of-the-art production facility in Maharashtra. The production is slated to commence from Q2 this year in Talegaon, Pune, marking Lotte Wellfood's first new factory post-acquisition, emphasizing the transfer of technology and advanced manufacturing processes from LOTTE Korea.