Adani enters cold chain logistics by acquiring 40.25% of Snowman

December 27, 2019: Adani Logistics today announced the signing agreements to acquire 40.25 percent stake in Snowman Logistics Ltd. (SLL) for Rs 296 crore from Gateway Distriparks Ltd.

Adani Logistics Limited (ALL) is a wholly-owned subsidiary of Adani Ports and SEZ Limited (“APSEZ”).

As part of the transaction, Adani Logistics will make a mandatory open offer as per the substantial acquisition of shares and takeover guidelines, 2011 for a maximum 26% of the public shareholding in the company. The acquisition is subject to customary condition precedents and expected to close by March 31, 2020.

Karan Adani, chief executive officer and whole-time director of APSEZ said, “We are excited today to announce the acquisition of Snowman Logistics Ltd. The acquisition is in line with our strategy and vision to be a leader in providing integrated logistics services in India and moving from port gate to customer gate. The cold chain is a key product in customer gate strategy given India’s consumer-driven demand. We will double the capacity in the next 5 years. With a focus on increased utilization, higher realization from product mix and operational efficiencies, this vertical will help further improve returns of logistics business”

Snowman Logistics Limited

Incorporated in 1994, SLL is in the business of integrated cold chain logistics providing warehousing, distribution and value-added services. With 25 years of presence, SLL operates from 31 temperature-controlled warehouses at 15 locations. The company infrastructure includes warehousing capacity of 1,04,343 pallets and 293 refrigerated vehicles (Reefers).

Adani Logistics Limited

Adani Logistics Limited (ALL) is a wholly-owned subsidiary of Adani Ports and Special Economic Zone Limited (APSEZL) and is an end-to-end logistics service provider. The company handles customer in segments like retail, industrial, bulk, break-bulk, liquids, auto and grain handling. ALL currently operates 5 logistics parks, 55 rakes ( 39 - container, 8 – GPWIS, 1 - AFTO and 7 agri rakes), 400,000 sq ft of warehousing space, 5,000 + containers, 0.9 million metric tonnes of grain silos and 9 Inland waterways vessels.

ALL has a target of 15+ logistics parks, 200+ rakes, 5 million sq ft of warehouse space, 15,000 + containers, 2.5 million metric tonnes of Grain Silos and 25 Inland Waterways Vessels by 2025.