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Lotte Wellfood to invest $300 million in India to expand production and supply chains, CEO says

Published: 07 Feb. 2025, 15:43

KIM JU-YEON
[email protected]

Lotte WellFood's Pepero products are displayed at a supermarket in Seoul on Feb. 6. The chocolate biscuits will be sold in India from July, the firm's CEO said, according to Indian reports. [NEWS1]

Lotte Wellfood CEO Paul Yi said the confectionary company will further invest an estimated $300 million in India to expand the firm's production and supply chains, according to Indian reports on Thursday.

Part of the funds could come from the sale of Lotte Wellfood's Jeungpyeong factory, which the firm will sell to Shilla Bakery. The two companies signed the deal for an undisclosed amount on Friday, Lotte Wellfood said the same day.

The CEO talked of the company's intent to invest the $300 million in India over the next three to five years to reporters at a media roundtable in Pune, India, on Thursday, the Business Standard reported. On the same day, the executive attended the inauguration of the firm's ice cream manufacturing facility in the city that produces Havmor Ice Cream, which Lotte Wellfood acquired in 2017.

A spokesperson at Lotte Wellfood's Seoul headquarters confirmed the co-CEO's comments but said the amount is "susceptible to change."

"The CEO meant to express Lotte Wellfood's commitment to invest in the country […] but the amount is an estimate. The funds could be used to equip new production lines or launch new products in India," the spokesperson said.

Yi also told local reporters that he expects the merger of its Indian subsidiaries, Lotte India and Havmor Ice Cream, to be completed in March. The company announced the merger in August 2024 to streamline operations.

Meanwhile, the firm said Friday it was selling its Jeungpyeong factory, which produced baked goods, to “improve asset efficiency.”

Lotte Wellfood was formed through the merger of Lotte Foods and Lotte Confectionery in 2022. The firm has continuously adjusted the amount of production and streamlined manufacturing lines after some ice cream and baked goods production lines overlapped. The factory had not been operating since June.

The proceeds from the deal will be used toward expanding Lotte Wellfood’s global business, the firm said, while citing examples from operations in India.

Lotte Wellfood will start selling its chocolate stick biscuit brand Pepero in India in July, CEO Yi told Indian reporters. The company used 33 billion won ($22.8 million) to construct its first-ever overseas plant dedicated to producing Pepero in Haryana.

BY KIM JU-YEON [[email protected]]