Lotte India, part of Korean conglomerate Lotte Corporation and one of the leading players in the confectionery industry in the country, has expanded its factory at Nemam, on the outskirts of Chennai. The company has invested `185 crore in the 85,562 square-foot expansion of the confectionery factory to increase production of its Lotte Choco Pie products.
The investment will play a key role in strengthening Lotte India’s leadership position in the Indian confectionery market and will create an additional 200 jobs for the people in and around Nemam.
The company has witnessed exceptional growth, with annual sales surging from Rs 168 crore in 2007-2008 to `496 crore in 2021-22, reflecting an impressive year-on-year growth rate of over 21%. In the fiscal year 2022-23, the company achieved an annual sales of `657 crore.
The expansion, initiated in October 2022, was driven by the necessity to meet the surging demand and sustain the growth trajectory.
Milan Wahi, MD, Lotte India, said, “This expansion builds on Lotte India’s rich history in India and comes at an exciting time for our overall investment and growth in the country. With an additional 85,562 square-foot, our factory’s facility area has witnessed a substantial expansion, increasing from 18% to 32%, making it one of the largest factories in India at a total size of 5,16,398 square-foot.”
The factory at Nemam has been recognised for maintaining the highest safety and hygiene standards since its inception in 2010. It has achieved ‘zero accident hours’ in the last 10 years due to high safety standards practiced inside the factory and has 99% retention rate, the company said in a statement.
Wahi said: “Nemam has specifically been a great place to expand into, as there is a healthy job force, and space for development. The augmented production capacity now stands at 1,420 tonnes per month. This substantial increase equips Lotte India to meet the rising demand for its products in the Indian market and also support potential opportunities for export in future.”
Lotte India came into existence post the takeover of Parrys Confectionery from Murugappa Group in 2004. Lotte Wellfood Co (formerly Lotte Confectionery), the parent company of Lotte India, is part of the Korean conglomerate, Lotte Corporation. The company has brands like Coffy Bite, Cononut Punch, Caramilk, Lacto King, Jellies, Lollipops and Eclairs.