South Korea Lotte Confectionary Co.
Ltd will be acquiring Ahmedabad based ice-cream maker Havmor Ice Cream Ltd. for
Rs 1,020 Crore. Founded in 1944, Havmor today manufactures 150 kinds of
products from two plants and sells from around 30,000 dealers. The company’s
ice creams are sold in 14 states.
Havmor Ice Cream Ltd is the seventh
largest ice cream and frozen desserts maker in India with a 3.5% market share. The
value of the ice cream and frozen desserts segment in India grew 20% in 2016 to
reach Rs10,200 crore in sales and is forecast to see a constant value compound
annual growth rate of 11% over 2016-21, leading to sales of Rs17,000 crore, as
per a December 2016 report by market researcher Euromonitor International.
Gujarat Cooperative Milk Marketing
Federation Ltd, which sells the Amul brand, is the leading firm in the ice
cream and frozen desserts segment with a 17% market share. HUL is the second
largest, with a 9.7% market share, according to the Euromonitor report. The
acquisition marks Lotte’s entry into the India ice-cream market and will give
the company a larger geographic presence.
Lotte entered India in 2004 and has
since then established large scale Choco-pie factories in Chennai and Delhi. Last
year, Lotte confectionery reached a market share of 90% in the Indian Choco-pie
market. Havmor will continue to operate its signature chain of restaurants and
eateries across Gujarat as well as its signature brand and concept café—Huber
& Holly.
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