Integrated cold-chain logistics service provider and unit of Gateway Distriparks Ltd, Snowman Logistics has hit back at media reports claiming that the company’s business has been least impacted due to the COVID-19 outbreak.
Although Snowman initially faced some logistical issues due to lack of availability of drivers, the pandemic has not had any adverse impact on the company’s business as its operations continue even during the ongoing lockdown period, it said.
Snowman Logistics is considered under the ‘essential services’ category as per the Ministry of Home Affairs (MHA), and accordingly all the warehouses of the company have been functional and fully operating, the company informed in a filing to BSE on April 08, 2020.
According to Snowman, the prawn culture crop this year has been excellent and exports are slow leading to more storage of seafood, thereby increasing the company’s core business of cold store warehousing.
Snowman Logistics possesses world class assets that comply with global standards with stringent Food Safety Management System (FSMS) processes and certifications such as ISO 22000 and British Retail Consortium (BRC).
Until this date, the warehouse occupancies at Snowman have increased to 91.5% from 84% as on March 22, 2020 (two days before the nationwide lockdown started).
The company further informed that it has been successfully able to reduce the debt to Rs 54 crore as on April 30 this year from Rs 90 crore as on March 31 the previous year, which signifies the inherent cash generating ability of the company.
Snowman said it has also reinitiated the expansion plans at three new locations which were put on hold after signing the share purchase agreement for stake sale.