Adani Logistics, a wholly-owned subsidiary of Adani Ports, purchased a major stake for INR 296 crore in Snowman Logistics Ltd, thus making a formal entry into the world of cold chain logistics.
The company is all set to acquire a 40.25% stake in Snowman Logistics Ltd from Gateway Distriparks Ltd, as per the signing of the agreement.
“The purchase price of INR 44 per share represents a 3.2% premium to the market price of December 27, 2019, and a 12% premium to 60-day average,” the company said in a statement.
“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. Cold chain is key product in customer gate strategy given India’s consumer driven demand. We will double the capacity in next 5 years.”Karan Adani , Chief Executive Officer and Whole Time Director of APSEZ
Incorporated in 1994, Snowman is an acclaimed name in the domain of cold chain logistics with over 30 percent of capacity within the integrated network of organised cold chain service providers in India. It provides warehousing, distribution and value-added services.
The Adani group currently operates 5 logistics parks, 55 rakes, 400,000 sq ft of warehousing space, 5,000-plus containers, 0.9 million tonnes of grain silos and 9 inland waterways vessels. The Company is targeting 15-plus logistics parks, 200-plus rakes, 5 million sq ft of warehouse space, over 15,000 containers, 2.5 million tonnes of grain silos and 25 inland waterways vessels by 2025, the statement said.
The announcement of this acquisition by Adani has come up at a time when India is coping with economic slowdown amid domestic companies cutting down on expenditure due to lack of strong revenue visibility.