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
Home-grown ice-cream brand Havmor announced its acquisition by Lotte Confectionery for Rs 1020 cr. Promoters of Havmor Ice Cream Ltd. (HIL) have agreed to a 100% acquisition by Lotte Confectionery.
Lotte Confectionery has decided to acquire 100% of shares of HIL during its Board of Directors meeting held on November 23. Post-acquisition of Havmor, Lotte Confectionery will start its ice cream business in the Indian market that boasts a population of approximately 1.3 billion customers. The Share Purchase Agreement has been executed in the afternoon of November 23. 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.
HIL was founded in 1944 and is headquartered in Ahmedabad, Gujarat. 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 and beverage companies to enter the Indian market in 2004. Since then, the $80 bn 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% in the Indian choco-pie market by making active investments.
Chairman Pradeep Chona and MD Ankit Chona 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. Havmor will continue to operate its signature chain of restaurants and eateries across Gujarat as well as its signature brand and concept café Huber & Holly”.
Havmor worked with its sole financial advisors KPMG, alongside Veritas Legal and Dhruva Tax consultants on the deal. The entire deal will be concluded in a weeks’ time.