Lotte WellFood (formerly Lotte Confectionery) announced on Oct. 10 that its Indian subsidiary, LOTTE INDIA, will begin full-scale operations of the third production line of Lotte Choco Pie at its Chennai factory. An investment of approximately 300 billion won has been made to expand this line.
Due to the rapid increase in sales as Lotte Choco Pie emerged as a “national snack” in India, a new production line was added at the Chennai factory.
Lotte WellFood began local production of its Choco Pies in the Chennai factory in southern India in 2010. In 2015, the company built a new factory near Haryana State in the northern part of New Delhi, thus establishing a Choco Pie belt connecting the north and south of India. The New Delhi Choco Pie factory, which occupies a land area of 76,033 ㎡ and a floor area of 24,793 ㎡, was established with an investment of about 700 billion won.
As of 2022, the average operation rate of the two existing Choco Pie production lines exceeded 104%. To meet the increasing demand, the decision was made to invest in the expansion of a third Choco Pie line. Almost 300 billion won was allocated for the establishment of manufacturing lines and refrigeration warehouses. Following a year of expansion work, the newly produced Lotte Choco Pies are set to be shipped.
With the addition of the third production line at the Chennai factory, the annual production capacity is expected to increase by more than 1.5 times. Once the new production line becomes fully operational, it can stably secure an additional production quantity of about 400 million packs annually. Based on the expanded production capability (CAPA), Lotte WellFood has set this year’s sales target for the Lotte Choco Pie brand in India at around 800 billion won, an increase of over 20% from the previous year. Holding a market share of nearly 80% in the Indian Choco Pie market, Lotte Choco Pie aims to further strengthen its leading position by increasing the market share gap.
Lotte WellFood made its initial entry into India in 2004 by acquiring the Indian confectionery company Parrys. While Lotte Choco Pie initially exported domestic products to India, they later developed a vegetarian version of the Choco Pie specifically for Indian consumers. The marshmallows used in Lotte Choco Pie were adapted from animal-based gelatin to plant-based ingredients, showcasing a thorough localization strategy.