Snowman Logistics

Q1FY23 Concall Notes

  • Primary Businesses: Warehousing (Cold + Dry WH) + Transportation business (incl. Snowlink)
  • Pallets: 130k (Utilisation=89%): so pallets used = 115.7
  • Net debt: 90cr
  • Capex plans:
    - 75-100cr (internal + loan both)
  • Kolkata cold WH:
    - land approval done
    - awaiting buildiong plan aproval from government
    - Phase I: 5k pallets
    - Phase II: 4k pallets
  • New plant: Siliguri- current utilisation at 35% expects to touch 75% by october
  • Growth in the current quarter YoY
    • Warehousing : +15%; (Margins: 35%)
    • Transportation: + 61%; (Margins: 4%)
    • ASP: +6%
    • Overall Margins: 24%
  • QSR Sector has shown a growth of 30-35%

  • Warehousing
    • Change of strategy
      • increased demand for Dry warehousing (currently 15% of revenue) from food and pharma; growing fast and is a customer pull product
      • hence, added 7-8k pallets in dry warehousing via leasing hence asset light
      • Cold WH: Kolkata WH plans on full swing
    • Offer end-to-end solution
      • except manufacturing and selling everything managed by Snowman
      • ie become like a national distributor for them
  • Transportation Business
    • Reefer Vehicles: 249
      • 82 dedicated vehicles
      • 150 available on need basis
    • the latter two are availble via snowlink
      • asset light
      • as do not have to manage drivers, maintainence, fuel etc
      • hence margins are largely protected
    • so total 480 available
    • Snowlink Revenue:
      • 16 cr (last year 6cr); huge potential to grow
      • An aggregator service for cold chain vehicles
  • Snowserve (Dedicated WH)
    • Amazon and Fraazo currently
    • Contracts: 3-9 years
    • 4 cities:
      • Delhi, Mumbai, Ahemdabad, Pune
    • this business can grow 25% yoy


Asset heavy business in a largely unorganised sector.
Trying to improve business economics by multiple initiatives eg growing dry WH business on a lease basis thereby decreasing capes requirements, not expanding fleet rather decreasing it and going asset light by creating an aggregator platform. Also, can be a beneficiary of grocery deliveries by e-commerce players. Execution risks, macro risks and risk from competition/startup space present

Discl: Small Position; tracking


In addition to this they will be adding Dry Warehouses on leases and continue its asset-light approach.

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