Lotte Confectionery acquire Havmor ice-cream business for 164.5 billion

Marco Green
November 24, 2017

Following the acquisition of India's fastest-growing ice cream brand Havmor Ice Cream Ltd (HIL), Lotte Confectionery - the South Korean company worth $80 billion - will start its ice cream business in the Indian market, which boasts of a population of approximately 1.3 billion. Lotte will now expand its confectionary business in India to also include ice creams.

Havmor, on the other hand, plans to continue with its signature chain of restaurants and eateries across Gujarat as well as its signature brand and concept café - Huber & Holly.

KPMG, Veritas Legal and Dhruva Tax consultants have been appointed as the financial advisers for the deal.

HIL, a famous ice cream maker and seller based in Gujarat, the central city of the northwestern region in India, has 73 years of history since its foundation in 1944.

Speaking on the development, HIL Chairman Pradeep Chona and Managing Director Ankit Chona said "This decision was a very hard one to make". The company manufactures 150 kinds of products from two plants and sells from about 30,000 dealers. The 3.5 to 4 per cent market stake Havmor controlled in the ice cream scenario in India had reportedly made it a sought after option for multinationals to invest in. The South Korean company as such has presence across diverse sectors including tourism, heavy chemicals, construction and machinery, communication and electronics, trading services etc. "But we believe that Lotte Confectionery is the right brand to take the company to the next level", added Pradeep Chona, chairman of the company. The company has around 2,00,000 liters per day of installed ice-cream making capacity and has a manufacturing unit at Naroda. Lotte said that 90% of its market share is in Indian choco-pie sphere.

Some of these brands like Coffe Bite and Lacto King came in Lotte's portfolio when it acquired Murugappa Group company Parry's Confectionery in 2004.

Other reports by Click Lancashire

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