Snowman Logistics bets on enhanced operational capacity; eyes Rs 280-300 crore revenue in FY22
(C) Provided by CNBCTV18
Snowman Logistics has expanded a fair amount of its operational capacity to serve the e-commerce space. Throwing more light on the outlook for the rest of the year, Sunil Nair, CEO and wholetime director, spoke to CNBC-TV18. Nair said, “Pharma is one segment of our business and vaccinations are a part of that business, which has contributed around 3-4 percent of the total pharma revenues.
The company is the sole distribution partner to Dr Reddy’s Laboratories (DRL), that has launched the Sputnik V vaccine. Currently, for the pharma business, our run rate is 15 percent, while last year it was around 9-10 percent.” Snowman Logistics Limited is engaged in the business of providing integrated cold chain solutions to users in India.
The company is focused on its core business of temperature-controlled warehousing for frozen and chilled products with the transportation division acting as an enabler. On expanded capacity in West Bengal and revenue contribution from that, he said, “We added a new facility in Siliguri, and at the same time also expanded in some of the existing locations. So, at the beginning of the year, we were at 1, 07,000 pallet positions, which has now become 1, 14,000 pallet positions and by October, it will be at 1,20,000 pallet positions, which are all shared warehousing facilities.”
“For e-commerce, the company expanded from two small facilities in Mumbai and Delhi respectively, to a large facility in Mumbai and another facility coming up in Pune, which should be ready in a couple of weeks’ time. In total, we will have 1, 20,000 pallet positions and 1,10,000 square feet of three warehouses for e-commerce, backend operations fulfillment centers, and all these put together on a matured stage, which is around 85 percent capacity utilisation, it should add anywhere around Rs 22 to 25 crores of revenues to the company,” he mentioned. The company expects the revenue to come to them within this year and the full-year contribution will come in by next year.
Also Read: Snowman Logistics in talks with 2 more imported vaccine makers apart from Dr Reddys On revenues, he further explained, “For FY22, our target was to reach Rs 300 crore but because of COVID, these projects got delayed by a couple of months. So, that negligible impact would be there but otherwise, anywhere between Rs 280 to 300 crore is what we are looking at.”
For the full discussion watch video
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