Lotte Wellfood is strengthening its push into the Indian market by sharply increasing production capacity for Choco Pie, which has established itself as a "national snack" in India. After adding a production line to meet rising demand in the Indian market, the company recently launched a joint venture with Japan's Lotte Confectionery to oversee its Asia business, and is expected to further accelerate its overseas market expansion.
According to Lotte Wellfood on the 28th, the company's fourth Choco Pie production line, built at the Rohtak plant in Haryana state operated by its Indian subsidiary LOTTE India, has begun full-scale operation. Lotte Wellfood invested approximately 30 billion won last May to begin the expansion, and started full production after completing the stabilization process in June.
With this expansion, LOTTE India's annual Choco Pie production capacity (CAPA) has increased by about 33% from before. As its supply capacity has grown, the company expects Choco Pie sales in India this year to also increase more than 20% from last year.
Choco Pie is a leading brand that currently holds more than 70% of the Indian market. Last year, local sales exceeded 100 billion won for the first time, and the brand recorded an average annual growth rate of about 20% over the past three years. In response to rising demand, Lotte Wellfood added a third production line at its Chennai plant in 2023, and has continued to expand its production base with the completion of this Rohtak plant expansion.
Product development tailored to local consumer characteristics is also cited as a factor behind the growth. Considering the food cultures of Hinduism and Islam, the company used plant-based ingredients instead of animal gelatin in the marshmallow, and used heat-resistant chocolate to maintain quality even in high-temperature climates. Through this localization strategy, Choco Pie has established itself as India's leading pie brand.
The India business is also maintaining rapid growth. LOTTE India's sales rose from 269 billion won in 2023 to 290.5 billion won in 2024, and recorded 281.3 billion won last year. First-quarter sales this year came to 93.4 billion won, up 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 will reach 373 billion won, up 32.6% from a year earlier.
Centered on LOTTE India, which integrates the biscuit and ice cream businesses, Lotte Wellfood aims to unify its distribution networks in the north, south and west, improve production and logistics efficiency, and achieve annual sales of 1 trillion won by 2032. "With the operation of the fourth production line, we are now able to stably respond to rising local demand," a company official said. "We will continue the growth momentum of Choco Pie while improving the operational efficiency of the integrated entity, to leap forward as a company leading India's biscuit and ice cream market."
Its push into the Asian market is also expected to gain momentum. This month, Lotte Wellfood established a joint venture in Singapore with Japan's Lotte Confectionery to oversee its Asia food business. The new entity will serve as a control tower integrating production, sales, logistics and management systems, pursuing the development of global mega brands, joint research and development (R&D), and entry into new markets. The industry expects that synergy will also grow in investment and business expansion in growth markets, including India.
