Snowman Logistics, a market leader in integrated temperature-controlled logistics services, has released a letter on 14 May to clarify the information related to the impact of Covid-19 on its business.
The company, via its letter dated 8 April 2020 had informed the stock exchanges that its business had been considered under the ‘essential services” category by the Ministry of Home Affairs (MHA). Since then, all the warehouses of the company are functional and fully operational. Thus, the pandemic did not have any adverse impact on the company’s business as its operations continued during the lockdown period. However, the company faced some logistical issues due to the lack of availability of drivers.
Further, this year the prawn culture crop has turned out well, but exports are slow. This leads to more storage of seafood, thereby increasing Snowman’s core business of cold store warehousing. The seafood storage business is not impacted due to the Covid-19 pandemic. The company states in a press note that the impact was in the calendar year 2019 due to the Cyclone Fani and Bulbul. Due to the increased demand, the warehouse occupancies at Snowman have increased to 91.5% as on date from 84% as of 22 March 2020 (that is before the lockdown).
During the year, the company has successfully reduced the debt to Rs 54 crores as on 30 April 2020 from Rs 90 crores as on 31 March 2019. This signifies the inherent cash-generating ability of the company. The company has reinitiated the expansion plans at three new locations, which were put on hold after signing the share purchase agreement for the stake sale
Snowman possesses state of the art infrastructure that complies with global standards with stringent Food Safety Management System (FSMS) processes and certifications such as ISO 22000 and British Retail Consortium (BRC).
With 31 strategically located temperature-controlled warehouses, having a total pallet capacity of 1,04,343 across 15 cities, including the key markets of Mumbai, Chennai, Bengaluru and Kolkata, Snowman offers its services to customers including dairy products (butter and cheese), canned food items, poultry and meat, seafood, healthcare and pharmaceutical products.