Snowman Logistics re-starts expansion plan after exiting deal with Adani Logistics

Snowman Logistics Ltd, a unit of Gateway Distriparks Ltd, has restarted expansion plans after the promoter called off the deal last week to sell its 40.25 per cent stake in the cold chain company to Adani Logistics Ltd.

The ₹60-crore expansion plan involves setting up new cold storage facilities at Siliguri in West Bengal and Coimbatore as well as doubling the capacity of the facility at Krishnapatnam in Andhra Pradesh besides some small projects within existing facilities. The expansion plan will be funded entirely through debt.

The company have already acquired land in Krishnapatnam about 10 km away from Krishnapatnam Port and in Siliguri. In Coimbatore, we have shortlisted the land. That’s when we held everything. Now, we will re-activate that and go ahead,” Nair said.

Before the deal was scrapped, Adani Logistics Ltd, a unit of Adani Ports and Special Economic Zone Ltd (APSEZ), acquired a 26 per cent stake in Snowman Logistics in March through a mandatory open offer to public
shareholders.

During the open offer, Mitsubishi Corporation and Mitsubishi Logistics Corp sold their 9.36 per cent and 2.17 per cent stake respectively in Snowman Logistics to Adani Logistics and exited the company. Following the exit, Mamoru Yokoo, a non-executive director, representing the Mitsubishi entities ceased to be a member on the company’s board from May 11.