Snowman Logistics provides integrated temperature-controlled logistics services across India. It operates 28 temperature-controlled warehouses and offers warehousing, transportation, and value-added services to customers in industries like food, pharmaceuticals, and consumer goods. Snowman saw significant growth in fiscal year 2015, with warehouse capacity expanding by 39% and financial ratios like fixed asset turnover and current ratio improving substantially. The cold chain industry in India is projected to grow rapidly in coming years, providing opportunities for further expansion.

1. Presented by
Salman Mohammed Shiras
MBA FA I

2.  A cold chain is a temperature-controlled supply chain.
 An unbroken cold chain is an uninterrupted series of storage and distribution activities which
maintain a given temperature range.
 It is used to help extend and ensure the shelf life of products such as fresh agricultural produce,
seafood, frozen food, photographic film, chemicals, and pharmaceutical drugs.
 Uses product specific environment parameters.
Logistics
Temperature
Control
Cold Chain
Logistics

3. • Manufacturers
• Precooling System
• Reefers
• Refrigerated railway wagons
• Refrigerated cargo containers
• Cold Storages
• Warehouses
• Value Added Services
TransportEnd
Customers
Hotels, airports, ports,
factory, markets etc.
• Reefers
• Refrigerated railway wagons
• Refrigerated cargo containers

4.  Various industries covered under cold chain comprise agriculture, horticulture and floriculture,
dairy, confectionery, pharmaceuticals, chemicals and poultry, among others.
 Highly fragmented – 3500 players in unorganized sector & 30 players in organized sector.
 Organized players account for only ~8–10% of cold chain revenues.
 There are approximately 6,300 cold storages in India designed originally for single commodity
storage.
 75 percent of the cold storage capacity is used to store potatoes, while only 23 percent fall in
the multi-product category.
 65% of India’s cold chain storage capacity is contributed by Uttar Pradesh and West Bengal.
 The current capacity is capable of handling less than 11% of what is produced.

5. Strengths
• Backbone of industries
• Essential to preserve the quality of
products
Weakness
• High barriers to entry
• Highly fragmented
• Low technology penetration
• Lack of trained manpower
Opportunities
• Emphasis on exports
• Growth of organized retail
• Growth of end segments
• Demand of pharmaceutical sector
• Government Initiatives
Threats
• Highly capital intensive
• Lack of infrastructure
SWOT ANALYSIS

6.  Recognized as sunrise sector.
 Less than 10% of produce pass through a cold chain.
 The Indian cold chain industry, expected to grow at a CAGR of ~28% over the next four
years and reach a market size of ~USD 13 billion in 2017.
 Shift in technology of construction from conventional brick wall construction to sandwich
insulated panel and reinforced concrete (RCC) structures to pre-engineered buildings
(PEB) steel structures.
 Energy-efficient practices like energy recovery systems, energy-efficient designs of
refrigeration equipment and automation.
 Introduction of green technology & use of renewable energy
 Development of reefer infrastructure in view of India’s exports thrust and potential.

8.  Snowman Logistics Limited, founded in 1993, is an integrated pan-India temperature-
controlled logistics services provider.
 Distribution network comprises primary and secondary transportation supplying, amongst
others, to QSRs, retail outlets, restaurants and hotels within a city.
 Largest promoter and shareholder – Gateway Ditriparks Limited.
 Other shareholders are Mitsubishi Corporation, Mitsubishi Logistics Corporation, International
Finance Corporation and Norwest Venture Partners.
 Manages 28 temperature-controlled warehouses across 15 locations [as of 31 March 2015].
 Successfully completed the IPO in August 2014 at a price of Rs. 47. The issue was
oversubscribed ~60 times.
 The Company’s shares were listed on the BSE and the NSE in September 2014.

13.  Snowman’s integrated ‘source to stores’ operation comprises warehousing, primary
distribution, secondary distribution and value-added services (kitting, labelling, sorting and
bulk breaking).
 Offers services across a spectrum of temperature- from ambient to chilled and frozen (i.e.-
25ºC to +20ºC).
 Blast freezing facilities at temperature controlled warehouses in Bengaluru, Chennai,
Visakhapatnam, Kolkata, Mumbai, Ahmedabad, Delhi, Chandigarh and Surat.
 During the year, warehousing capacities were added at Mumbai, Chennai, Bhubaneswar, Pune,
Surat and Visakhapatnam, taking the total installed capacity from 61,700 pallets at the start
of the year to 85,500 pallets which is a growth of 39%.

14.  The Indian cold chain industry, expected to grow at a CAGR of ~28% over the next four years
and reach a market size of ~USD 13 billion in 2017.
 Unorganized nature provides a vast opportunity.
 Focus on multipurpose cold storages.
 Focus on express distribution.
 Potential future markets - F & V processing, pharma and e-commerce.

15. Ratio Analysis
Ratio Formula 2015 2014
Fixed Asset Turnover ratio Revenue/ Average Fixed Assets 10.46 1.59
Current ratio Current Assets/ Current Liabilities 3.18 0.82
Debt-Equity ratio Total Debt/Total Shareholder's Equity 0.17 0.59
Financial Leverage ratio Average Total Assets/ Average Total Equity 1.31 1.75
Interest Coverage ratio EBIT/ Interest Payments 2.19 2.22
Net Profit margin Net Income/ Revenue 12.19 15.14
Operating Profit margin EBIT/Revenue 23.17 24.77
Return on Assets Net Income/ Average Total Assets 25.09 17.83
Return on Equity Net Income/ Average Total Equity 0.059 0.101
Return on Total Capital EBIT/ Average Total Capital 0.02 0.07

16.  Annual Report
 Research Reports
 Wikipedia