Interview with Snowman Logistics

Success in the competitive world of cold chain logistics requires a focus on innovation, quality, and efficiency, asserts Sunil Nair, CEO of Snowman Logistics.

During Q3FY23, Snowman Logistics experienced a YoY increase of 49% in revenue and a 353% surge in net profit. Besides, your dairy and ice cream segment demonstrated an impressive YoY growth of 151%. What do you attribute to your exceptional financial results?   

Yes, we have got good growth over the last year. This has come primarily due to the growth of volume from Dairy and QSR. We expect the momentum to continue further. Post covid we see these two industries preferring organized partners rather than unorganized ones, due to better quality of service, compliance and contingency planning in place.

As the first company to introduce 5PL services in the Indian cold chain logistics and supply chain management industry, could you explain the significance and potential opportunities associated with this achievement?

The introduction of 5PL services has created a tremendous opportunity for us in the Indian market. Being the industry leader in cold chain and integrated solutions for the last three decades, this is an exciting phase for the company. We are converting our existing 3PL accounts to 5PL accounts and also adding new clients who will benefit from the 5PL services. This is a huge achievement for us and our customers.

5PL services have several significant benefits, including improved efficiency and streamlined operations, reduced logistics and supply chain costs, real-time visibility and tracking, which helps us better manage inventory and improve customer service, and improved risk management.

In addition to our existing 3PL services, we now provide distribution and consolidation services, such as sourcing on behalf of customers and full inventory management. Using our expertise and network of suppliers and customers, we are now offering one-stop distribution services from the manufacturing plant to the consumption points, adding value and increasing earnings from our existing businesses without investing in infrastructure. IKEA, Tim Hortons, and Baskin Robbins are some of our clients who are already using these services.

Is there a plan in place to decrease the net debt of your company, which currently amounts to approximately Rs 86 crore? 

Our debt-equity ratio is healthy. We will continue to maintain it at the current level. As we pay debts every year with the cash we generate in business, we will continue to borrow as well for our new expansions. 

Can you explain the level of competitiveness and your strategy for addressing the same?

We do not have any national competition as such. But we do compete with many regional competitors. Our efforts are always to upgrade ourselves and be the leaders in all functionalities of cold chain. To address this, we develop effective strategies that prioritize quality control, efficiency, and cost-effectiveness. This may involve the use of advanced technologies such as temperature monitoring sensors and automated inventory management and transportation systems. It also involves investing in a well-trained and skilled workforce, maintaining strong relationships with suppliers and customers, and seeking to improve processes continuously through data analysis and feedback. Overall, success in the competitive world of cold chain logistics requires a focus on innovation, quality, and efficiency.