Snowman Logistics reinitiates expansion plans at three locations
Integrated temperature-controlled logistics service provider Snowman resumed expansion plans at three new locations on Wednesday. The share buyback stopped after the deal was signed.
Gateway Distributions Limited (GDL), its promoter, recently concluded a share buyback deal to sell its 40.25 percent stake in Snowman Logistics to Adlogistics for Rs 295.92 crore.
Snowman is the largest cold chain provider in India, offering temperature-controlled warehouse and logistics services. The company has facilities in Mumbai, Chennai, and Bangalore.
The COVID-19 pandemic did not adversely affect its operations during the lockdown period. However, the company faced some logistic problems due to the lack of drivers.
In addition, this year’s shrimp culture crop is doing well and exports have slowed, which could further boost marine resources and boost the core business of Snowman’s Cold Store warehouses, the company said.
“The seafood storage business was unaffected by the Kovid-19 pandemic. In fact, the funny and bulbous hurricane season is set for 2019.”
As of March 22, warehouses have increased from 84 percent to 91.5 percent, Snowman said (before the lockdown).
The debt was reduced to Rs 54 crore from Rs 90 crore last year to 30 April. This is indicative of the company’s inherent ability to make money, ”the statement said.