Lotte India Corporation Ltd (LOTTEINDIA) Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating

Confectionery in the age of British Raj had to be imported from across the seas until the year 1914, when Parry’s picked up the gauntlet and pioneered the manufacture of sweets -- the first to do so in the country. Parry’s sweets went on to become a household name -- a name that people recollect with warmth and a smile. Ever since, the Parry’s factory was set up in Nellikuppam, in the Cuddalore District of Tamil Nadu in South India. Parry’s has become synonymous with sweets and confectionery.The name of the company was changed to Lotte India Corp in 2004.

While the penchant Indians have for sweets is not surprising that this smooth, milky and irresistibly delicious confectionery is the best gift any child could get. And an obsession with quality ensured that children had a choice of nothing but the very best in confectionery.

In the nine decades since, the scenario has undergone a dramatic change. There are a number of offerings in the market today, each wooing children with a wide array of products. But Lotte India Corp Ltd., the erstwhile Parrys Confectionery still finds a prominent place in the heart of consumers.

Parry’s has always stayed at the top, having weathered the vicissitudes of change, with ear close to the ground -- and to the hearts of children, changing, adapting and growing with the times - But never losing sight of its values traditions and ethics.

At the turn of this century, Parry’s is poised on the threshold of greater challenges in a global village, where dynamism and innovation is the very law of survival.

Lotte India’s manufacturing facility is located at Nellikuppam, South Arcot District, Tamil Nadu, which is in the southern part of India. The factory is housed in buildings constructed in the British era; but refurnished inside to accommodate the state of the art equipments. Apart from having our own factory at Nelllikuppam, Lotte India also has dedicated sub-contracting units at Kollenchery in Kerala and Sangli and Nasik in Maharashtra. All the products are manufactured under the most hygienic conditions. Great care is exercised in the selection and quality control of raw materials and packing materials. Rigid quality controls are implemented at every stage of the production process. Every batch of production is checked thoroughly using modern equipments.

In the backdrop of India joining the WTO, and the global giants eyeing the Indian Market with enthusiasm, the company needed to strengthen itself and broaden its base to delight customers across the country and abroad. With this vision in the mind, Murugappa Group, promoters of Parry’s Confectionery entered in to an agreement with Lotte Confectionery Limited, South Korea, by which the, entire shares which Murugappa Group, the founders of Parrys Confectionery, held was divested to Lotte Confectionery Limited -- a South Korean multinational giant.

Lotte Confectionery is the first company of the Lotte family of companies founded by Shin Kyuk-ho. The three L’s in the Lotte Emblem stand for Love, Liberty and Life. The corporate philosophy and idealism of Lotte is driven by dream of a world full of Love where people care for each other and respect each other’s thoughts.

The Lotte Group has presence in food & beverages, distribution, tourism and leisure business; heavy chemicals, construction and machinery; information, communication and electronics, trading and services, apart from welfare research and support services.

The Lotte Confectionery Co. Ltd. is the Lotte Group’s flagship Company in foods and beverages category. Lotte Confectionery, Korea, was established with 500 employees in 1967 and today it has more than 6000 employees. It has over 500 products produced at 5 large-scale plants in Korea. Lotte has been actively working towards establishment of overseas branches, production facilities and has a presence in more than 70 countries.

Lotte Confectionery’s annual sales are over $ 900 millions, Apart from Korea, Lotte has overseas investments in production facilities in China, Philippines and Vietnam

Products portfolio of the company includes:

Chewing gum (Lotte Xylitol, Lotte Juicy & Fresh, Lotte Spearmint, Lotte Fresh Mint, Flavono, White & E, Spout Cafe Coffee) candy, biscuits, chocolates, snacks, ice cream, and health care products.

Awards/ Achievements

The factory at Nellikuppam has been awarded with ISO 14001:1996 and HACCP awards by BVQI.

Milestones:

• 1910-1911  Parry’s acted as agents for M/s Glazebrook steel & Company of UK selling their sweets in Bombay, Karachi & Calcutta.
• Till 1913   Parry’s imported confectionery from C&E Morton Ltd. U.K.
• 1914   Factory set at Nellikuppam and EID Parry started manufacturing confectionery in a small way.
• 1920   Parry sweets developed an all India reputation for quality sweets.
• 1940   Parrys started exporting sweets to countries like Africa & Singapore where they were well accepted.
• 1941  Supplies made to Red Cross (about 300 tonnes) - in aid of war victims.
• 1954   Nellikuppam Confectionery plant of EID Parry spun off in to a newly formed company “Parry’s Confectionery Ltd”
• 1960   Period of growth for PCL. Pioneers several new trade practices. First to introduce Indian made wrapped sweets. 
• 1978   100% of all Parry’s sweets were machine wrapped.
• 1981  Murugappa Group took over Parrys.
• 1982   Unit at Maraimalai Nagar near Chennai opened for packing small consumer packs.
• 1983   Coco Products and Beverages Limited taken over by Parrys.
• 1986   PCL developed it’s own IT Division and undertakes computersation. PCL takes over the biscuits division that was a part of Parry & Co then.
• 1987   Modernization takes place at Nellikuppam once again.
• 1987   Maraimalai Nagar plant started manufacturing confectionery to meet growing demand.
• 1988   Shift from the 'King of Sweets' to focus on the brands commercials became product oriented.
• 1992   PCL Company crossed the Rs. 500 million mark. Nellikuppam crosses 8,00 tonnes production.
• 1993   R&D center opened at Manapakkam.
• CPBL stops cocoa processing totally and is into full-fledged production of confectionery.
•  1995   Established C & F Agents across the country.
• 1996   State-of-art Manufacturing facility established by modernizing the entire plant.
• 2003 Nellikuppam Plant gets the certifications from BVQI- Bureau Veritas Quality International for its best Quality Management System, Environmental Management System and Food Safety Management System
• ISO 9001: 2001 ISO 14001 : 1996 HACCP : 2002 Version
• 2004   Parrys Confectionery is now Lotte India Corporation Limited.