India’s frozen dessert industry, valued at over Rs 30,000 crore, is a blend of two similar-looking yet technically different categories—dairy-based ice creams and non-dairy frozen desserts. While both cater to the same craving for something cold and sweet, the key difference lies in the ingredients: ice creams are made with milk fat, while frozen desserts typically use vegetable oils. In a country that’s the world’s largest milk producer, this duality often leads to confusion at the counter. But some brands are now choosing to highlight what sets them apart, not to undermine the other, but to help consumers make a more informed choice.
Havmor, an 80-year-old ice cream company with a history that dates back to 1944 in Karachi, is doubling down on the real dairy segment of the market. After being acquired by South Korea’s Lotte Confectionery in late 2017 for reportedly Rs 1,020 crore, Havmor, as it claimed, has sharpened its focus on real dairy ice cream while leveraging Lotte’s manufacturing capabilities, R&D infrastructure, and global supply chain to expand its reach and improve its offerings. “Most of the brands people think of as ice cream are actually frozen dessert players. That’s our first differentiator—we’re firmly focused on real dairy ice cream,” Komal Anand, Managing Director, Havmor, told BrandWagon Online.
An acquisition that changed the game
When Lotte Confectionery acquired Havmor, it not only gained a trusted brand with a long history in India but also access to a growing market for ice cream. As per media reports, the deal was part of Lotte’s strategy to expand its presence in India, which has become one of the fastest-growing markets for dairy and frozen dessert products.
Since the acquisition, Havmor has focused on upgrading its infrastructure, innovating on its product lines, and targeting a higher-income demographic that is increasingly conscious of product quality. Anand pointed out that consumer awareness around ingredients is rising, especially in urban centres where more consumers are shifting to dairy-based frozen products. The use of real dairy not only addresses these concerns but also provides a premium angle in a crowded market. “Our strategy is simple. We focus on the authenticity of dairy,” Anand said. “In the long term, we believe this will pay off with loyal customers who are willing to pay a little more for a product they can trust.”
With Lotte’s backing, Havmor has expanded its footprint and streamlined operations. The company’s three primary manufacturing units—located in Ahmedabad, Pune, and Faridabad—have been upgraded with modern technology to ensure better consistency, scalability, and efficiency.
The chocolate strategy
While vanilla remains a staple in the ice cream market, chocolate is the true indulgent flavour. Havmor has made chocolate a central part of its strategy, focusing on its ability to offer high-quality, real chocolate ice cream. According to Anand, most competitors rely on pre-mixed chocolate powder or syrup, which limits the ability to control the taste profile. “Havmor doesn’t use pre-mixed chocolate. We buy chocolate blocks and process them in-house. This allows us full control over the flavour profile, and it ensures that the quality is consistent every time,” he explained.
This strategy has paid off with the company’s chocolate-based products, including its Zulubar, Blockbuster Chocolate, and Shotties, which are among its most popular offerings. Anand said that during the IPL, when Havmor became the official ice cream partner for the Gujarat Titans, chocolate was by far the most in-demand flavour.
“During the IPL games at the Narendra Modi Stadium in Ahmedabad, we noticed that every single person reached for the Zulubar first. Then, it was Shotties. After that, they went for Blockbuster Chocolate,” Anand said. “We asked the customers why they weren’t picking other flavours, and they told us simply: ‘We want chocolate.’”
The popularity of chocolate-based offerings speaks to the potential for growth in the premium dairy segment. While vanilla products dominate mass-market sales, chocolate, as an indulgence, has long been a key driver of revenue in the premium ice cream category. Interestingly, flavours like mango and strawberry also remain popular, especially in regions like Maharashtra and Gujarat, where local preferences for fruit-based ice creams are strong. Consumers in India are increasingly looking for regional and culturally relevant flavours that align with their taste preferences, adding another layer to the growing demand for diverse offerings.
Leveraging Korean technology
Lotte’s acquisition also brought access to Korean manufacturing technology, which has enabled Havmor to produce more complex, innovative products. One example is the Krunch bar—a four-layered ice cream candy made from chocolate, vanilla, cookie, and syrup—which has been produced at the company’s Pune plant using Korean machinery.
“We feel a responsibility to lead the category with differentiated offerings,” Anand explained. “Krunch is the kind of premium innovation that Indian consumers haven’t seen before. It’s a product that’s hard to make, and it’s expensive to scale, but with Lotte’s backing, we’re able to introduce it.”
Krunch is still available in select markets, and Havmor is carefully evaluating its performance before making it more widely available. Anand notes that Havmor is committed to growing its premium segment, and products like Krunch are designed to appeal to a more affluent demographic willing to pay a higher price for unique, high-quality ice cream.
The competitive landscape
The Indian ice cream market is a complex and fragmented one, with legacy players like Amul, Vadilal, and Mother Dairy continuing to lead in market share. As per Technopak, Amul dominates the Indian ice cream market with a 40-45% market share, while Vadilal holds a 15-20% share, particularly strong in Gujarat and Rajasthan.
Meanwhile, FMCG giants like Hindustan Unilever, with its Kwality Walls brand, are also major players in the space, targeting both the premium and mass segments.
Havmor, however, believes that its hybrid approach – combining local market knowledge with global capabilities- gives it a competitive edge. Anand emphasises the importance of its deep understanding of Indian tastes, especially in regions where the brand has already established a strong recall, such as Gujarat. Havmor’s focus on real dairy products, regional strengths, and Lotte’s global infrastructure sets the brand apart from many other players in the market.
“In terms of hybrid strength—combining local knowledge and global infrastructure—we’re probably the only ice cream player, aside from one other multinational, that has this kind of advantage,” Anand said.
Looking forward
Havmor’s strategy is centred on steady, regional growth, with a focus on quality and innovation rather than rapid nationwide expansion. The company has built strong distribution networks in key markets, particularly in Gujarat, where it leads the category. Moving forward, the brand plans to expand its reach through both traditional retail and newer channels, including direct-to-consumer platforms.
“The goal is to maintain our leadership in the premium segment and scale carefully. We are focused on giving customers what they want—real dairy, authentic flavours, and new, interesting products,” Anand said.
As India’s ice cream market continues to grow, Havmor’s strategy of using real dairy, leveraging global technology, and focusing on premium offerings may give it the foothold it needs to compete with both legacy brands and newer players in the space. In an increasingly competitive market, the challenge for Havmor will be to balance tradition with innovation while continuing to differentiate itself in a crowded freezer aisle.