After the acquisition of Havmor, India’s fastest growing ice cream brand, LOTTE Confectionery will start its ice-cream business in the Indian market that boasts a population of approximately 1.3 billion customers.
LOTTE Confectionery has decided to acquire 100 per cent shares of HIL, one of India’s biggest ice cream brands in India, for Rs 1,020 crore.
Founded in 1944 and Headquartered in Ahmedabad, Gujarat, HIL has been India’s fastest growing ice-cream brand over the last five years and has been one of the most sought after ice-cream brands by multinationals and PE investors alike. Havmor boasts a unique product portfolio with a significant parlor network operating across 14 states in India. The company manufactures 150 kinds of products from two plants and sells from around 30,000 dealers.
Meanwhile, LOTTE Confectionery was one of the first Korean food & beverage companies to enter the Indian market in 2004. Since then, the US $80 billion LOTTE Confectionery has succeeded in localization by establishing large scale choco-pie factories in Chennai and Delhi. Last year, LOTTE Confectionery reached a market share reached 90 per cent in the Indian choco-pie market by making active investments.
Speaking on the developments Pradeep Chona, Chairman and Ankit Chona, Managing Director said, “This decision was a very difficult one to make. It’s a brand that we have nurtured with our team for over 73 years. But we believe that LOTTE Confectionery is the right brand to take the company to the next level.”
LOTTE Confectionery plans to expand its market power from the northwest region to all across India with this entry into the Indian ice-cream market.
Havmor will continue to operate its signature chain of restaurants and eateries across Gujarat as well as it’s signature brand and concept café – Huber & Holly.
Havmor worked with it’s sole financial advisors – KPMG, alongside Veritas Legal and Dhruva Tax consultants on the deal.