Integrated temperature-controlled logistics service provider Snowman said on Wednesday it has reinitiated expansion plans at three new locations which were put on hold after signing the share purchase agreement for a stake sale.
Its promoter company Gateway Distriparks Ltd (GDL) had recently terminated a share purchase agreement to sell its entire stake of 40.25 per cent in Snowman Logistics to Ad Logistics for a consideration of Rs 295.92 crore.
Snowman is the largest cold chain provider in India and provides integrated temperature-controlled warehousing transportation and distribution services. The company has facilities in Mumbai, Chennai and Bengaluru.
It said the COVID-19 pandemic has not had any adverse impact on the company's business as its operations continued during the lockdown period as well. However, the company faced some logistical issues due to lack of availability of drivers.
Besides, said the company, prawn culture crop has been excellent this year and exports are slow, leading to more storage of seafood and thereby increasing Snowman's core business of cold store warehousing.
"The seafood storage business is not impacted due to COVID-19 pandemic. In fact, the impact was in 2019 due to the Cyclone F and Bulbul."
Snowman said its warehouse occupancies have increased to 91.5 per cent from 84 per cent as on March 22 (that is before the lockdown).
"During the year, the company has been successfully able to reduce the debt to Rs 54 crore as on April 30 from Rs 90 crore year ago. This signifies the inherent cash-generating ability of the company," it said in a statement.
( With inputs from ANI )