Snowman sees good growth potential in AP’s new seaports, FDI in retail

Wednesday, August 27, 2014 08:00 IST
Nandita Vijay, Bengaluru

Snowman Logistics, part of Gateway Distriparks, sees immense growth prospects in driving its temperature-controlled services and ambient distribution ensuing from the new seaports being identified in Andhra Pradesh. This was revealed to FnB News on the sidelines of the company’s public issue road show, which was held in Bengaluru recently.

The company also believes that foreign direct investment (FDI) in multi- brand retail would give fillip to the sector.

In Andhra Pradesh, the 14 notified non-major ports are Bhavanapadu, Meghavaram, Kalingapatnam, Bheemunipatnam, Gangavaram, Nakkapalli, Kakinada SEZ, Kakinada, S.Yanam, Narsapur, Machilipatnam, Nizampatnam, Vadarevu and Krishnapatnam.

“We have seen the future potential in Andhra Pradesh and went on to set up four warehouses here which cover two each in Hyderabad and Vishakapatnam,”explained Ravi Kannan, chief executive officer, Snowman Logistics.

At Visakhapatnam, Snowman offers blast freezing facilities at its temperature-controlled warehouses.

“These are the growth areas of the future and therefore expansions to these regions cannot be ignored,” he added.

On the scope of FDI in multi-brand retail, the Snowman CEO pointed out that it viewed it as a viable proposition with quality products coming, provided there were tough statutory norms put in place by the new government and it would transform the landscape of cold chain logistics.

The company is one of the largest integrated temperature-controlled logistics service providers operating 23 warehouses spread across 14 locations in the country.

Currently, a majority of its temperature-controlled warehouses are ISO 14001 (TUV-SUD), ISO 22000 (TUV-SUD) and FSSA certified. In addition, four of its temperature-controlled warehouses are EIA- and MPEDA-certified. Its client base in the food and beverage sector includes Graviss Foods, McCain Foods, West Coast Fine Foods, Amrit Hatcheries, Suguna Foods,  Tamil Nadu Cooperative Milk Producers’ Federation, Al-Karim Exports, and Karnataka Cooperative Milk Federation.

The proposed public issue of 4.2 crore equity shares where it intends to raise Rs 200 crore opens on August 26, 2014, and closes on August 28,2014. The price band has been fixed between Rs 44 and Rs 47 per equity share.