“This summer has been very strong from a demand perspective, but we’re seeing severe headwinds on the bottom line. Cocoa prices have nearly tripled compared to last year, and white butter and skimmed milk powder prices are rising as well,” Anand told Mint. “For a chocolate-heavy portfolio like ours, this has a substantial impact.”
Havmor, which has expanded its footprint across India with three manufacturing facilities—at Anand and Vadsar in Gujarat, and a new factory in Pune—says it has limited pricing power in the highly-competitive ice cream segment. “We’ve passed on only a small part of the inflation to consumers. It’s a very price-sensitive category, and we’re up against both cooperatives and multinational giants with larger scale and backward integration,” Anand said.
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The company recently launched ‘Crunch’, a new premium stick ice cream that uses Korean technology to layer jam, vanilla, chocolate, and cookies. “It’s the first of its kind in India, and only possible because of the tech transfer from Lotte Korea. This is not something any local player can replicate easily,” Anand said, adding that more Lotte products are expected to launch by June or July.
The innovation is part of Havmor’s wider strategy to offer differentiated products in the premium segment. Crunch is priced at ₹60, while premium products from global competitors cost nearly ₹100. “So yes, it is premium, but not prohibitively so,” Anand said.
Expanding footprint
Havmor has steadily expanded both manufacturing capacity and distribution. The Pune plant, which involved an investment of ₹100 crore, is expandable up to 16 lines. The company has also invested ₹50 crore in the Anand plant recently, adding five more lines. “Every year, we invest ₹40–50 crore in capital expenditure and supply chain alone,” Anand said.
Distribution-wise, Havmor expects to reach nearly 90,000 outlets by the end of 2025, up from around 60,000 two years ago. The brand is also focusing on growing in the southern markets, with Anand pointing to Chennai, where Havmor now has about 40 parlours. “Franchisees will only open parlours when they see strong demand. We’re seeing loyal customers and high throughput in these markets,” he said.
Besides, the company plans to continue expanding its franchise-led parlour network, which currently includes 250 outlets, mostly run by partners. Anand said the company is also entering newer territories, including Jammu & Kashmir, Uttarakhand, and Uttar Pradesh. “UP has the largest urban population in India. We’re very excited about the scale opportunities there.”
Quick commerce driving growth
Quick commerce is becoming one of Havmor’s fastest-growing sales channels, Anand said, though he declined to share specific figures. “It is growing exponentially. The category is benefiting because consumers don’t have to step out in 45-degree heat to buy ice cream anymore,” he said. However, he acknowledged that last-mile delivery challenges persist, with some customers receiving partially melted products.
“I personally monitor quick commerce deliveries over weekends, especially from our Anand location. We do share feedback with our delivery partners, but yes, there are gaps in training and infrastructure at the last mile,” he said.
Balancing tradition and newness
Havmor has focused on maintaining regional flavour preferences while also introducing new products. The company makes two versions of its popular butterscotch ice cream—one for Gujarat, Maharashtra and Rajasthan, and another for north and south India—based on consumer taste tests. “It’s a supply chain nightmare, but necessary,” Anand said.
The company also makes seasonal products using real Alphonso mangoes, such as its “Havmor Favorites” range, and is planning new launches in the functional and “better-for-you” segment, including sugar-free options. “Lotte has a robust global portfolio in this space, and we’re looking to bring some of those formats to India in the future,” Anand added.
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At present, Havmor has around 150–160 stock keeping units (SKUs), which Anand said are regularly pruned based on performance.
Brand investments
Anand said Lotte considers India a strategic market and continues to invest in both brand and infrastructure. Apart from advertising, the company has signed cricketer Hardik Pandya and actor Tamannaah Bhatia as brand ambassadors to reach audiences in both Gujarat and southern India.
“Hardik’s move from Gujarat Titans to Mumbai Indians actually helps us, as we now get visibility in two major markets,” Anand said.
Looking ahead, Anand said the company will continue to focus on innovation and regional relevance while navigating inflationary pressures. “Ice cream is a category where people want something new every summer. That’s what keeps it exciting—for us and the consumer.”
