Havmor Ice Cream to be acquired by Lotte Confectionery for Rs 1,020 crore

New Delhi: Home-grown ice cream manufacturer Havmor Ice Cream Ltd (HIL) has said it will sell its business to South Korea's Lotte Confectionery for Rs 1,020 crore.

Lotte, which is synonymous with the Lotte pie, has decided to acquire 100 per cent shares of HIL, the company said in a statement. Lotte will now expand its confectionary business in India to also include ice creams.

"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," HIL Chairman Pradeep Chona said.

The 23-year-old Havmor that is based out of Ahmedabad has a large network of parlours across 14 states in the country. The company sells 150 kinds of products via 30,000 dealers.

The USD 80 billion Lotte Confectionery entered India in 2004 and boosted its market share to hit 90 per cent in the domestic choco-pie market.

Havmor will continue running its signature chain of restaurants across Gujarat as well as its signature brand and concept cafe Huber and Holly.

KPMG, Veritas Legal and Dhruva Tax consultants have been appointed as the financial advisers for the deal.