Completion is due for July next year, the company said.
The plant with a combined floor space of 24,500 square meters will be built in the northern province of Haryana at a total cost of 66 billion won. It will produce Choco Pies worth 38 billion won a year.
Lotte Confectionery built its first Choco Pie plant in India in 2010. It is located in Chennai, southern India.
The company said its sales in India reached 100 million won last year.
Choco Pie, a small round chocolate-covered pie with a marshmallow center, is one of the company's flagship products.
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