Snowman Logistics soars on partnering Dr Reddy's for Sputnik vaccine

Snowman Logistics surged 10.91% to Rs 56.95 after the company said it has partnered with Dr. Reddy's Laboratories for Sputnik COVID-19 vaccine in India.

Snowman Logistics will manage the delivery through five of its high-capacity temperature-controlled warehouses in Mumbai, Delhi-NCR, Kolkata, Chennai and Bengaluru. The company will offer storage, order processing, shipper packing and secondary transportation from these locations. The locations are strategically located to take care of not just the state distribution, but the whole of the regional requirements. The temperature, throughout, will be maintained between -20 degrees celsius and -25 degrees celsius. With this, Snowman Logistics will be the largest 3PL (third-party logistics) service provider for vaccines in the country offering national reach to Dr Reddy's Laboratories.

Snowman Logistics has the capability to readily store 65 crore doses at any given time, which can be increased to 105 crore doses with a short notice for pan-India distribution. The company has the ability to store at upto -80 degrees celsius, and provides real time temperature monitoring to ensure the correct conditions for vaccine distribution during the entire supply chain. In addition, the company has a capex plan of roughly Rs 425 crore for capacity expansion, with a focus on the pharma and e-commerce sector where the company has seen huge increases in demand since the onset of the pandemic, especially as there is a dearth of capacities in the organised sector.

In the last year, the company has designed solutions catering to small volume locations where there are no cold storages (Small towns, Taluka, Village etc.), by using refrigerated containers, reach in freezers, etc for effective temperature-controlled deliveries.

On a standalone basis, Snowman Logistics reported a net loss of Rs 0.42 crore in Q4 FY21 compared with net loss of Rs 1.17 crore in Q4 FY20. Net sales during the quarter increased 5.1% year-on-year (Y-o-Y) to Rs 64.11 crore.

Snowman Logistics is the market leader in integrated temperature-controlled logistics services, catering to the varied cold chain logistical requirements of its clients, on a pan-India basis.

Powered by Capital Market - Live News