Food acquisition news : South Korean confectionery company Lotte Confectionery has agreed to acquire Indian ice cream manufacturer Havmor Ice Cream for INR1,020 crore ($157 million).

The transaction which will enable $80 billion worth Lotte Confectionery to foray into ice crease business in India is expected to close this week, as per a report in Mint.

Havmor Ice Cream has been in the ice cream business since 1944 and is based in Ahmedabad in Gujarat.

This Indian ice cream manufacturer boasts of over 160 ice cream products which are available across more than 40,000 outlets in a dozen Indian states at least.

Havmor Ice Cream has a manufacturing capability of producing 200,000 litres of ice-cream a day.

Pradeep Chona, the chairman at Havmor Ice Cream on Lotte acquisition of Havmor has been quoted by the publication to have 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.”

Lotte Confectionery, became one of the first South Korean food company to enter into the Indian market, which it did some 13 years ago.

The South Korean confectionery company has products in the gums, candy and snacks categories. BooProo and Spout are its gums products while its candies in India include Coffy Bite, Lacto King, Eclairs and Caramilk. In the snacks category, Lotte Confectionery sells Lotte Choco Pie, which contains cream filled biscuits dipped in Choco.

Lotte Confectionery has established large scale Choco-pie manufacturing plants in Chennai and Delhi.

Commenting on Lotte Confectionery acquisition of Havmor Ice Cream, the South Korean confectionery company, stated: “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.”

Post acquisition, Havmor Ice Cream will continue to run its restaurants and eateries in Gujarat. The Indian ice cream company will also continue to operate Huber and Holly, its ice cream and dessert parlour.

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  Food acquisition news, Havmor Ice Cream, India, Lotte Confectionery