We found a right fit with LOTTE at right valuation, says Havmor MD

In a large scoop, South Korean major LOTTE Confectionery picked up a 100 per cent stake in the seven-decade-old Ahmedabad-based ice-cream maker, Havmor Ice Cream Ltd for ₹1,020 crore.

The deal, which grabbed investors' attention, left thousands of ice-cream lovers and Havmor fans in nostalgia as their ‘own’ brand changed hands. Havmor Managing Director Ankit Chona speaks to BusinessLine on the deal and the emotions attached with the home-grown ice-cream brand. Excerpts:

What made you take the decision to exit the ice-cream business?

The decision was tough. For three generations we built, developed and nurtured this brand. We had never thought of selling it. But I looked at the right valuation and with a right partner, we felt happy to look at the exit. It was never that we were looking for exiting the business.

It was a right fit with LOTTE and we found right valuation for a business that was built three generations ago.

What are the emotions attached with Havmor brand for you as a promoter?

We are very emotionally connected with the brand. It was started by my grandfather Satish Chona with zero seed capital in 1944 in Karachi of pre-independent India. After partition, we moved to Ahmedabad.

My grandfather used to make ice-creams at night and sold it during the day.

In 1953, he started the first outlet on Relief Road in Ahmedabad. Some of our signature flavours were Madhu Malti, Raja Rani and Kesar Malti , they were all developed by him and have stood the test of time.

How difficult was the decision for the family to exit?

It hasn't sunk in yet for all of us. The deal has not been closed yet and it will be a while before that happens.

There has been an emotional connect with the business and also with the employees. We are more concerned about our people and trying to ensure that they are oaky with the move and nothing changes for them.

What will change for the consumers and Havmor fans?

There will be no change. The business will continue as usual, even as LOTTE will acquire the shares. In fact, I will continue to be a part of this journey with them to ensure a smooth transition for a foreseeable future. We will still work as partners because the restaurant business still has the brand of Havmor and it will still continue to have partnership with Havmor ice-cream.

How much share does the ice-cream business have in your overall business?

Ice cream is about 80 per cent of our overall turnover of roughly around ₹550 crore. We currently have installed ice-cream capacity of 200,000 litres per day. We have covered about 70 per cent of the ice-cream consuming population in the country with our presencein 14 States.

What do you plan to do with the money from the deal?

I haven't chalked out a plan on that front as of now.

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