Lotte Wellfood, the parent company of Lotte India, has unveiled its strategic growth plans for the Indian market by establishing a new production line in Haryana dedicated to manufacturing its globally popular confectionery product, Lotte Pepero. This marks a significant milestone for Lotte Wellfood, as it is the first exclusive production line for Lotte Pepero set up outside of Korea. The new facility, set to be operational by mid-2025, reflects Lotte Wellfood’s commitment to meeting the global demand for Lotte Pepero and introducing it to the Indian market.
With a substantial investment of over Rs. 200 crores, the state-of-the-art manufacturing facility in Haryana will play a pivotal role in the production and export of Lotte Pepero globally. Lotte Wellfood aims to bring Original and Crunky Pepero products to the Indian market, following the success of Lotte Choco Pie. The company plans to position Lotte Pepero as a premium brand in India, initially targeting large retail formats and e-commerce channels, with plans for expansion into traditional channels in the future.
Mr. Lee Chang-yeop, the CEO of Lotte Wellfood, expressed the company’s active expansion plans in the Indian market, emphasizing the substantial growth potential. Following the success of Lotte Choco Pie in India, introducing Lotte Pepero is expected to strengthen Lotte’s brand presence and boost sales in the Indian confectionery market. The investment is strategically aimed at creating locally tailored Lotte Pepero products that align with regional food culture and preferences.
The confectionery market in India, estimated to be worth approximately 27,000 crores, holds significant potential for growth. Lotte India’s sales performance reached Rs. 654 crores in 2023, and the company targets more than 20% growth in 2024. The investment in Lotte Pepero production and introduction into the Indian market aligns with the company’s vision to further strengthen its position in India.
Chocolate is a preferred choice among Indian consumers, making it an essential shopping item. Lotte Pepero received positive feedback from 90% of Indian consumers in terms of concept and taste, according to in-depth research. The innovative product differentiation, specifically chocolate stick snacks, garnered favorable responses.
Lotte Wellfood, through its subsidiary Havmor ice cream, has also committed to a capital investment of INR 436 crores in a new state-of-the-art production facility in Maharashtra, focusing on ice cream production. This marks Lotte Wellfood’s first new factory since its acquisition, incorporating advanced manufacturing processes and technology from LOTTE Korea.
In conclusion, Lotte Wellfood’s investment in Lotte Pepero production and introduction into the Indian market signifies a strategic move to tap into the country’s growing confectionery market. The commitment to localizing products and aligning with regional preferences reflects the company’s dedication to catering to diverse consumer tastes. As the new facility gears up for operation, Lotte Wellfood aims to solidify its presence in India and contribute to the vibrant and evolving Indian confectionery landscape.
