Lotte Wellfood is accelerating its push into the Indian market by expanding its Choco Pie production capacity there by 33%. The company plans to strengthen its dominance in India through production expansion and distribution efficiency, while also driving into overseas markets such as India after establishing a joint venture in Singapore with Japan's Lotte Confectionery to oversee its Asian food business.
Lotte Wellfood said on the 27th that a fourth Lotte Choco Pie production line, added at the Rohtak plant in Haryana state operated by its Indian subsidiary LOTTE India, has begun full operation. The company began the expansion in May 2024 with an investment of 30 billion won, and entered full production in June this year after a stabilization process.
The expansion increases LOTTE India's annual Choco Pie production capacity (CAPA) by about 33% from before. Based on this, Lotte Wellfood expects its Choco Pie sales in India this year to grow more than 20% from last year.
Lotte Choco Pie currently holds more than a 70% share of the Indian Choco Pie market. Its average annual sales growth rate over the past three years has reached 20%, and local sales surpassed 100 billion won for the first time last year. To meet rising demand, the company expanded its production base by adding a third production line at its Chennai plant in Tamil Nadu state in 2023, followed by the fourth line at the Rohtak plant this time.
Considering the food cultures of Hinduism and Islam, Lotte Wellfood has developed products tailored to local characteristics in India, using plant-based ingredients instead of animal gelatin in the marshmallow and applying heat-resistant chocolate to maintain quality in high-temperature environments.
LOTTE India's sales rose from 269 billion won in 2023 to 290.5 billion won in 2024, followed by 281.3 billion won last year. First-quarter sales this year were 93.4 billion won, up about 16.5% from 80.2 billion won in the same period a year earlier. Korea Investment & Securities forecast that LOTTE India's sales this year would reach 373 billion won, a 32.6% increase from last year.
Lotte Wellfood aims to achieve annual sales of 1 trillion won by 2032, centered on LOTTE India, which integrates its confectionery and ice cream businesses, by unifying its northern, southern and western distribution networks and pursuing production and logistics efficiency. "With the operation of the fourth production line, we can respond more stably to rising local demand," a Lotte Wellfood official said. "We will continue the growth of Choco Pie while improving the operational efficiency of the integrated entity, leaping forward as a company that leads India's confectionery and ice cream market."
This month, Lotte Wellfood established a joint venture in Singapore with Japan's Lotte Confectionery, through which it plans to unify the two companies' production, sales, logistics and management systems, and to oversee the fostering of global mega brands, joint research and development (R&D), and entry into new markets.
