South Korean food and beverage major Lotte Confectionery decided to acquire Havmor Ice Cream Ltd. (HIL) in India at the board meeting on November 23. The company will acquire 100 percent shares of HIL for 165 billion won (US$152.21 million).
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. The company has the second largest market share in the northwestern region and currently runs 112 stores.
HIL has 45 billion won (US$41.51 million) of assets and 960 employees. The company also manufactures 150 kinds of products from two plants and sells them through about 30,000 dealers. HIL is expanding its business to new markets with Delhi as the center from this year and it is expected to post 100 billion won (US$92.25 million) in sales this year.
Lotte Confectionery became the first Korean food and beverage company that entered the Indian market in 2004. Since then, the company built its large-scale Choco Pie production plant in Chennai and Delhi and quickly succeeded in localization with aggressive investment. Accordingly, it had a 90 percent share in the Indian choco pie market and sales of 70 billion won (US$64.58 million) last year.