With plans to augment warehousing capacities, cold chain logistics provider Snowman Logistics has allocated INR 50 crore to acquire land across the country, as per sources.
The company, which has entered into key agreements with various firms to transport Covid-19 vaccines, is in search of similar land facilities across the country.
The sum set aside for building a fully-operational warehouse in Coimbatore, deemed to add another 5,000 pallets capacity (storage space for about 3.5 crore vaccine doses) in the next 4-6 months, sources in the know of the development said.
“The necessity to increase warehousing capacity arose from the increasing demand from the existing customers demanding more space in new geographies, and with the strong outlook from the cold chain users,” a source said.
Snowman Logistics is looking to acquire similar land facilities in Madhya Pradesh (Indore), Uttar Pradesh (Ghaziabad and Kanpur), Maharashtra (Mumbai and Nagpur), Bihar (Patna), and West Bengal (Kolkata).
The company has reserved close to INR 50 crore for land acquisitions as a part of its plans to reserve a total of 10,000 pallets space across India.
The Benguluru-headquartered firm recently bought a 3-acre land parcel in Coimbatore for about INR 4 crore.
Snowman Logistics now has 31 temperature-controlled warehousing facilities across 15 locations in the country with a combined capacity of 1,08,375 pallets and a fleet of about 300 refrigerated trucks. The company is planning to double its pallet capacity to more than 2,00,000 pallets.
It had posted a net profit of INR1.42 crore for the third quarter ended December 31, 2020, as against a net loss of INR 3.45 crore recorded during the comparable year-ago period.
Recently, it had also signed a pact with low-cost airline SpiceJet for transportation of Covid-19 vaccines for its clients, in which Gateway Distriparks holds a majority 40 per cent stake.
The logistics company is also in talks to partner with Covid vaccine manufacturers for distribution, once the bulk movement starts, which is expected to begin from April this year.
The company is also in the process of raising up to INR 250 crore through a Qualified Institutional Placement.