Gateway Distriparks, the parent company of Snowman Logistics, is pursuing to divest its majority stake in the loss-making firm to arrange more funds and reduce debt, said the sources, who did not want jis name to be disclosed.
Gateway Distriparks had listed Snowman Logistics in September 2014 and currently at present holds 40.25 percent stake in the logistics firm. Gateway has around Rs 600 crore of debt on its books and is looking at avenues to monetize the poor performing assets.
Gateway Distriparks had just recently acquired back Blackstone’s stake in Gateway Rail Freight for Rs 850 crore, ending an arbitration proceeding with the private equity investor regarding the terms of exit.
Snowman Logistics is engaged in cold chain logistics with a pan-India presence at 31 locations in 15 cities. Snowman Logistics Ltd. talks about challenges in delivering cold chain products to the end-user at the right temperature. He lists our areas that need development and urges traders to look at long term gains rather than opting for low operating costs.
Adani Logistics, a 100 subsidiary of listed company Adani Ports & SEZ, recently acquired Adani Agri Logistics from Adani Enterprises in an all-cash deal at a proposed enterprise value of Rs 1,662 crore. Recently, Snowman Logistics Ltd has been awarded the Karnataka Logistics Leadership Award 2019. This award brings yet another acknowledgment of our vision, service and overall business approach.
Adani plans to Invest Rs 5,500 crore for Power Transmission and Food Processing Sectors in Uttar Pradesh in 5 Years
Union and State governments have been promoting the construction of cold chain infrastructure in India through its various schemes and providing subsidies on capital expenditure. However, industry stakeholders have been demanding to provide subsidies on power tariffs to keep operational cost in control in order to increase the profitability of the business.
Despite being an emerging and fast-growing business sector in India, the cold chain logistics industry still faces a huge amount of wastage of perishables. Cargo Talk digs deeper to understand how this pains the industry be done to improve the present situation.
Snowman Logistics and Gateway Distriparks, however, did not respond to CNBC-TV18’s query. Adani Ports & SEZ too did not comment on the story.