Lotte Confectionery is to set up a new plant in India to manufacture Choco Pie chocolate covered cream-filled biscuits, the South Korean company's most popular snack brand in the country.

The new US$50m unit in Rothak in the state of Haryana will be ready by February 2015 and will supplement production from Lotte's existing plants near Chennai and Nellikuppam in southern India. Lotte also sources products from three dedicated sub-contractor plants.

"Our sales are rising and during big festival sessions there used to be shortages," an official at local subsidiary Lotte India Corporation in New Delhi told just-food. "There will also be big savings on transportation costs as the new unit will take care of the north and eastern Indian markets."

Mostly local raw materials go into Choco Pie, though some imported ingredients are included, the official said. The product is sold in pack sizes of two, six, 12 and 20 pieces and is the favourite Lotte snack among children.

The plant could be expanded in future to manufacture Lotte confectionery products including Coffy Bite, Lacto King, Caramilk and Eclairs as well as BooProo gum, the official said. "More than 60% of the land at the new site is kept vacant for future expansion," the official explained.