Havmor Ice Cream plan to invest 450 crore to increase capacity in India
- ByStartupStory | January 18, 2023
According to a top corporate executive, Lotte Confectionery, based in South Korea, would invest Rs 450 crore in its Indian subsidiary Havmor Ice Cream over the next five years, the majority of which will go toward building a new greenfield factory to increase manufacturing capacity.
According to Havmor Ice Cream Managing Director Komal Anand on Tuesday, the investment will be used to build a new greenfield facility at MIDC Talegaon in Pune, Maharashtra, increase the capacity of the current Faridabad-based operation, and improve supply chain and go-to-market strategy.
By the fourth quarter of 2024, the Talegaon plant would be operational and producing Lottee variety of premium ice cream.
According to its marketing plan, Lotte Confectionary, which purchased Havmor Ice Cream for Rs 1,000 crore in December 2017, has positioned the domestic brand in the mass affordable segment and Lotte brand ice cream in a little higher mid-premium range.
Anand stated of the Talegaon plant: “This is a big investment. It will use the design and manufacturing technology from Lottee.”
Additionally, the business would engage in capital projects and build a freezer infrastructure in preparation for future consumer market expansion.
Anand remarked, “This investment would be funded internally.
World Cone, Lottee’s best-selling ice cream globally, is currently available in the Indian market.
Anand claims that Lotte World Cone’s acceptance has surpassed expectations since its introduction in 2021.
Additionally, the business intends to launch one more product from its global range in 2019.
Anand described Havmor as one of the fastest-growing ice cream companies in India, with a presence in 20 states and 216 exclusive ice cream parlours around the country.
“We would increase our presence and availability in these 20 states. We would be focusing on the urban markets of tier 1 & II,” he said.
Given that the per capita consumption of ice cream in India is lower than that of other Asian nations, Lotte views it as a strategic market with space to develop.
Anand stated that the 60,000 square metre Talegaon facility will result in a major boost in its production capacity to fulfil future demand. Additionally, it will have approximately 1,000 workers.
The present production facilities for Havmor Ice Cream in Ahmedabad and Faridabad will be supplemented by this one.
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