Lotte Group Chairman Shin Dong-bin inspects Lotte Wellfood’s new ice cream manufacturing plant in Pune, India. The facility is a key part of the company’s strategy to expand local production and strengthen its presence in India’s growing consumer market. / Courtesy of Lotte Wellfood

Lotte Wellfood’s overseas operations are emerging as a major profit engine, with India playing an increasingly important role in the South Korean food maker’s growth strategy.

The shift was evident in the company’s second-quarter results. Lotte Wellfood’s overseas subsidiaries generated 29.6 billion won ($21 million) in operating profit, up 133% from a year earlier, while overseas revenue rose 28% to 311.2 billion won.

More significantly, overseas operations accounted for about 46% of the company’s total quarterly operating profit of 64.7 billion won. The figures suggest that international markets are moving beyond their traditional role as sources of additional sales to become meaningful contributors to Lotte Wellfood’s overall profitability.

India stands at the center of that transformation

Lotte Wellfood has been building a localized production network in the country, targeting both India’s rapidly expanding consumer market and growing demand for Korean food brands. In its confectionery business, Choco Pie has become one of the company’s key products in India, with increased sales contributing to second-quarter growth as the company continued to expand its local manufacturing capabilities.

The strategy extends beyond confectionery. Lotte Wellfood has also strengthened its ice cream business in India, where higher utilization of its new plant in Pune increased local production and product supply during the quarter.

The combination of local manufacturing and established Korean brands gives Lotte Wellfood a different growth model from simply exporting products from South Korea. Producing goods closer to consumers can help the company respond more effectively to local demand while expanding distribution across one of the world’s largest consumer markets.

Kazakhstan represents another important overseas base. Lotte Wellfood recorded higher domestic sales and exports in the Central Asian market during the second quarter, adding to the growth generated by its Indian operations.

The overseas momentum helped lift Lotte Wellfood’s consolidated second-quarter operating profit by 89% year on year to 64.7 billion won. Revenue increased 8.6% to 1.16 trillion won. For the first half of the year, operating profit nearly doubled to 100.5 billion won on revenue of 2.18 trillion won.

The contrast between revenue and profit growth is notable. Overseas operating profit expanded much faster than overseas sales, indicating that the company’s international operations are beginning to contribute not only to scale but also to stronger earnings.

Lotte Wellfood plans to further expand the Lotte brand in India and Kazakhstan during the second half of the year while strengthening local distribution networks. It also plans to use marketing linked to Korean culture to reach more consumers abroad.

For Korean food companies seeking growth beyond a mature domestic market, India is increasingly viewed as a long-term opportunity rather than simply another export destination. Lotte Wellfood’s latest results offer an early indication of how localization, manufacturing investment and the growing visibility of Korean consumer brands could translate that opportunity into earnings.

With overseas subsidiaries already generating nearly half of its quarterly operating profit, the next stage of Lotte Wellfood’s growth may increasingly be determined outside South Korea.