Havmor Ice Cream Ltd (HIL) today said it will sell the business to South Korea's Lotte Confectionery for Rs 1,020 crore.
Lotte has decided to acquire 100 per cent shares of HIL, the company said in a statement.
Post acquisition, Lotte will start its ice cream business in the Indian market.
"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.
Ahmedabad-based Havmor has a significant parlour network across 14 states in India. It makes 150 kinds of products from two plants and sells via 30,000 dealers.
The USD 80 billion Lotte Confectionery entered India in 2004 and has established choco-pie factories in Chennai and Delhi. Last year, its market share reached 90 per cent in the Indian choco-pie market.
Lotte plans to expand its market power from the northwest region to all across India with this entry into the Indian ice-cream market, the company said.
Havmor, however, will continue to operate its signature chain of restaurants and eateries across Gujarat as well as its signature brand and concept cafe Huber and Holly.
KPMG, Veritas Legal and Dhruva Tax consultants were the financial advisers for the deal.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)