Lotte Wellfood Breaks Ground in Haryana, India, for Global Lotte Pepero Production
Lotte Wellfood, formerly known as Lotte Confectionery, is set to make waves in the global confectionery industry with the establishment of a groundbreaking production line for its renowned product, Lotte Pepero, in Haryana, India.
Strategic Global Expansion:
In a strategic move to diversify its global production hubs, Lotte Wellfood has chosen India as the first international destination for Lotte Pepero production. This marks a significant milestone for the company, moving beyond its Korean roots to cater to the burgeoning demand for its iconic confectionery product on a global scale.
Rs. 200 Crore Investment in State-of-the-Art Facility:
With a committed investment exceeding Rs. 200 crores, Lotte Wellfood aims to set up a state-of-the-art manufacturing facility in Haryana. The facility, scheduled to be operational by mid-2025, will stand alongside the existing factory dedicated to Lotte Choco Pie production.
Global and Local Focus:
While the new facility will primarily cater to the global demand for Lotte Pepero, it will also introduce the popular confectionery product to the Indian market. The move aligns with Lotte Wellfood’s strategy to position Lotte Pepero as a premium brand in India, following the success of Lotte Choco Pie.
CEO Lee Chang-yeop’s Vision:
Mr. Lee Chang-yeop, CEO of Lotte Wellfood, expressed optimism about the venture, stating, “We plan to actively expand our investments in the Indian market, which holds substantial growth potential. Introducing Lotte Pepero will enhance Lotte’s brand strength and expand sales in the Indian market.”
Targeting Premium Market Segments:
Lotte Wellfood’s initial focus in India will be on the premium market segment, with plans to target large retail formats and e-commerce channels. The company envisions gradual expansion into smaller traditional channels as part of its comprehensive market penetration strategy.
Consumer Feedback and Local Adaptation:
Market research indicates a positive response from Indian consumers, with 90% expressing satisfaction with Lotte Pepero’s taste and concept. The company aims to create locally tailored Lotte Pepero products that resonate with regional food culture and preferences.
Havmor’s Concurrent Investment:
In tandem with this ambitious project, Lotte Wellfood’s subsidiary, Havmor ice cream, is set to invest INR 436 crores in a new, state-of-the-art production facility in Maharashtra. This reinforces Lotte Wellfood’s commitment to advanced manufacturing processes and technology transfer.
Future Growth Projections:
Lotte India’s sales performance reached Rs. 654 crores in 2023, and the company aims for more than a 20% growth in 2024. With chocolate being a preferred item among Indian consumers, Lotte Wellfood anticipates substantial success with its diverse product offerings.
This strategic move not only positions Lotte Wellfood as a global player but also underscores the attractiveness of the Indian market for major confectionery conglomerates. The groundbreaking ceremony in Haryana marks the beginning of a new chapter for Lotte Wellfood, one that is poised to reshape the confectionery landscape in India and beyond.