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Snowman Logistics to set up a new facility at the Gateway Distriparks Logistics Park in Krishnapatnam

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Snowman Logistics – a major service providers in India with regard to temperature controlled freight transportation today announced plans of setting up a new facility at the Gateway Distriparks Logistics Park in Krishnapatnam with a capacity of 3,500 pallets (with a further scaling of 10,000 pallets) of temperature controlled and dry warehousing.

The location is 7 kms from Krishnapatnam port, which currently services the requirements of Southern and Central Andhra Pradesh such as the newly developed Sri City industrial region, Eastern Karnataka, Northern Tamil Nadu and Eastern Maharashtra.

Combined with its existing Chennai, Hyderabad and Vishakhapatnam facilities, Snowman will be in a position to fully cater both Tamil Nadu and Andhra markets. This will place Snowman with the Gateway Distriparks CFS in a unique position to be able to offer a bundled solution to the EXIM trade through the CFS and temperature controlled storage and distribution facilities.

The facility is scheduled to become operational by March 2017 and will cater to the EXIM trade including sea-food, meat, dairy products, pharmaceutical products, fruits and fruit pulp.

Snowman’s current capacity is 98,500 pallets which will go up to 103,000 pallets once the Cochin warehouse, currently under construction, is operational in the next quarter. With the addition of the Krishnapatnam facility, Snowman’s total capacity will reach 106,500 pallets in this financial year.

Growth Story:

This is a story based on better logistics going forward. GST will help them immensely, but over a year or so. More importantly, India has streamlined power generation, which means that over the next few years, access to power will be both better and cheaper. With lower power, they can operate at lower costs. The supply chain improvements in food produce – from the removal of the monopoly of mandis, to a larger focus on distribution by the government – will help cold chain logistics companies.

About Snowman:

Promoted by Gateway Distriparks, Snowman Logistics operates cold chain management with distribution and warehousing being the core area. Currently it has a fleet of 501 vehicle and warehouse pallet capacity of 98,500.

Cold chains are useful for a number of things – food produce (which needs refrigeration for better storage), medicines (which may degrade if not temperature controlled) and milk etc. In a country like India, where temperatures are high through the year in many places, cold chains form a valuable logistic link.Snowman Logistics Share Price 22 June 2016divider

Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

 

 

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