Snowman logistics final
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A mock of Annual General Meeting was done for an assessment purpose
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Snowman logistics final
- 1. Annual General Meeting 2015
- 2. 60 times over subscribed. Best debut in terms of the listing premium in the last 5 years. Total amount raised – Rs 228 Crore. 130 8 90 Money Utilization in Cr. Warehouses Working Capital Long term liabilities
- 4. Expanding Warehouses and Pallets Setting up our own Processing Units
- 5. Capacity of each pallet: a ton of merchandise. Current capacity as of FY14 : 61,543 pallets. Future capacity by the end of FY15: 90,000 pallets.
- 6. WAREHOUSES SPREAD ACROSS ALL INDIA
- 7. Food Processing Industry is expected to grow at more than 17% in the next 3 years. Demand for off-season fruits and vegetables and increase of quick service and other restaurant formats. . Acquiring 2 Bangalore-based startups- QSR.
- 8. Started a processing center at our warehouse in Hyderabad. Future Expansion in major states like Uttar Pradesh & West Bengal U.P. 44% West Bengal 19% Others 15% Punjab 6% Gujarat 6% Andhra Pradesh 5% Bihar 5% U.P. West Bengal Others Punjab Gujarat Andhra Pradesh
- 9. Major Challenges: • Delivery window for each client different • Ban on trucks in peak hours • Fluctuating Fuel Price Major operating costs: • Transportation • Fuel
- 10. 370 Reefer vehicles - 63 owned and 307 leased Vehicle load ranges from 2.5-20 tonnes GPS enabled for real time tracking and data logger
- 11. 22 temperature controlled warehouses are ISO 22000: 2005 Certified 18 temperature controlled warehouses are ISO 14001: 2009 Certified
- 12. Total Investment Required : Rs. 250 Crores Sources of Funding: Source % of Total Invst. Amount (Cr.) Company’s Fund 15 % 37.5 NABARD 15 % 37.5 (@ 8 %) Right Issue 70 % 175
- 13. No. of shares (issuing): 3.5 Cr. Offer Price: Rs. 50 This issue is for two for 5 Rights Issues Discount % : 41 % against Rs. 85.3
- 14. CRISIL Research: Graded 4/5 Reputed Promoters Low Debt : Equity Ratio: Pre- IPO – 0.5x Post-IPO – 0.1x High Revenue Generation • Indian Cold Chain Industry: Growth Rate: 15 – 17 % CAGR • Established Client Base • Growth Rate of Food Processing Industries: 17 %
Editor's Notes
- Operates in the niche business segment of temperature-controlled logistics service.
- Dear shareholders I would like to turn your attention to performance highlights of our company. Total revenue has grown times from 1,141 Mn to 1,552 mn. Profit after taxes grown frm 190 to 225 Mn Net worth grwth frm appx 1300 Mn to 2200Mn book value stands at
- units (includes 3,000 normal temperature pallets) and this is sought to be increased to 90,000 pallets by the end of FY15. Each pallet has the capacity to store a tonne of merchandise. The company is expanding its capacities to cater to the fast-growing cold chain sector, estimated at Rs 15,000 crore, expected to grow annually at 15 – 17 % per cent between FY14 and FY16. and also to reduce the wastage in fish production & vegetables Production, Fish production annually 25 – 30 % wasted. 11% of world’s total vegetables production is accounted by India alone but India’s share in global vegetable trade is only 1.7%
- specialising in chopping vegetables and putting together sandwiches and burgers before sending them off to quick service restaurants (QSR), as per areport in The Economic Times c This deal would help Snowman enter the fruits and vegetable supply business
- For temperature monitoring
- The Government of India has set up a Rs 2,000 crore (US$ 315.15 million) corpus for Nabard to help lend to food processing units at a lower interest rate. The fund will be provided to large food chains and units and also for creation of infrastructure in these parks. The government announced in this year's budget setting up of a Fund and gave the responsibility to Nabard to promote food processing sector through mega food parks. Nabard has been allocated Rs 2,000 crore fund, which will be utilized to lend to state government entities and private sector,“ Nabard would provide loans for a period of seven years at an attractive interest rate of 7.8 per cent to 8 per cent. Nabard would provide loans for large food chains and food processing units in a food park and also for creation of infrastructure at food parks, he said.
- This price is 41% less than the Rs. 85.3 price at which snowman logistics stock trades.
- The assigned grade reflects Snowman’s strong position as a leading domestic integrated cold chain company and good long-term prospects for the cold chain industry Promoter’s Strong Experience and Business Relations in Logistic Sector ( Snowman Logistics’ promoter is Gateway Distriparks Ltd with a 54.04% stake. Some other shareholders are Mitsubishi Logistics Corporation (2.92%), Mitsubishi Corporation (12.57%), IFC (12.40%) and Norwest Venture Partners, Mauritius (13.78%);) Nabard would provide loans for a period of seven years at an attractive interest rate of 7.8 per cent to 8 per cent. Nabard would provide loans for large food chains and food processing units in a food park and also for creation of infrastructure at food parks, he said. The grade is supported by Snowman’s strong end-product portfolio, loyal clientele, professional management, seasoned shareholders and modern cold chain infrastructure . It further plans to expand its capacity to 1,00,000 pallets by FY16.