SNOWMAN Increasing Cold Temperature & New WarehousesNSE:SNOWMAN
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• Network Advantage - Ability to offer customers the largest Pan-India cold chain networkfor storage and distribution
• Expansion Plans – Planned expansion basis our customers’ requirements to reach new markets & to address the demand of the organised sector• Technology Driven - Snowman has developed customised software & apps for increasing efficiency of operations
• 25+ Years of Experience - Snowman has innovated best practices and is a knowledge leader in the industry
• Customer Trust & Satisfaction - Full visibility & transparency provided to customer using in-house tech platforms & many uninterrupted years of satisfactory customer service
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Leading integrated temperature-controlled logistics
• Snowman Logistics Ltd was incorporated in 1993 and Gateway Distriparks acquired a majority stake in 2006• Pan India network of 45 warehouses across 20 cities
• Integrated service offering of warehousing services, transportation, and distribution bundled with value added services• Modern facilities with high quality infrastructure across the country
• Expansion plans to increase warehousing presence for catering to the fast-growing demand of the organised sector• Snowman is first Indian cold chain company to introduce 5PL services, which offer innovative and integrated solutions
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Strengths:
Established market position in the temperature-controlled logistics industry: Snowman is the largest provider in the highly fragmented temperature-controlled warehousing, transportation and logistics industry in India. The company provides quality service and end-to-end solutions to customers in the temperature-controlled industry, thereby resulting in repeat orders and long-term contracts providing around 80% revenue visibility. As on March 31, 2023, the company had warehousing capacity of 1,35,552 pallets across 44 warehouses in 18 cities. It also had 239 refeer vehicles (refrigerated trucks) providing last-mile, inter-city distribution services through a consignment agency model. It caters to marquee customers in diversified end-user industries, such as seafood, pharmaceuticals, dairy, e-commerce and quick service restaurants (QSR). Under the dedicated warehouse segment, the company has opened 4 warehouses for e-commerce and pharmaceutical clients including Amazon, Fraazo, Impelpro, among others.
Adequate financial risk profile: Gearing was 0.25 times as on March 31, 2023, and is expected to remain low in the medium term. Debt protection metrics are adequate with interest coverage and net cash accrual to total debt ratios are ~4.3 times and 0.63 times, respectively, in fiscal 2023. Any higher-than-expected debt for funding capex could adversely impact the capital structure and debt protection metrics and will remain a key rating sensitivity factor.
Continued parentage of GDL: Post settlement of agreement between Snowman and Adani Logistics Ltd (ALL) in July 2020, GDL is the single largest owner with 40.25% stake in the company and substantial control on the board. The rating continues to benefit from moderate operational and strategic linkages with GDL, as both the companies offer complementary services in the logistics industry, thereby providing cross-selling opportunities to customers. GDL is one of the largest private players in the container freight station, railways and inland container depot businesses in India. Furthermore, Snowman is well established amongst the leading organised players, providing temperature-controlled services in India
