No adverse impact on biz due to COVID-19: Snowman Logistics
The statement comes days after the proposed sale of entire 40.25 per cent stake of Gateway Distriparks in Snowman Logistics to Adani Group firm was called off. "The business of Snowman Logistics Ltd is considered under the 'essential services' category as per the Ministry of Home Affairs (MHA), and accordingly all the warehouses of the company are functional and fully operational.
"Thus, the pandemic has not had any adverse impact on the company's business as its operations continued during the lockdown period as well," the company said in a filing to BSE.
The clarification from the company came in response to some media reports which said Snowman Logistics' business was being impacted due to COVID-19, according to the filing.
However, the company faced some logistics related issues due to lack of availability of drivers, it said.
Further, this year the prawn culture crop is excellent and exports are slow leading to more storage of seafood, thereby increasing Snowman's core business of cold store warehousing, it said.
The seafood storage business is not impacted due to the pandemic, it said adding that in fact, the impact was in the calendar year 2019 due to cyclones Fani and Bulbul.
"Due to the above mentioned reasons the warehouse occupancies at Snowman have increased to 91.5 per cent as on date from 84 per cent as on March 22, 2020 (i.e. before the lockdown)," it said.
The proposed sale of entire 40.25 per cent stake of Gateway Distriparks in Snowman Logistics to Adani Logistics has been called off due to repudiation of the agreement by the acquirer, according to a regulatory filing on Monday.
Snowman Logistics is the cold chain unit of Gateway Distriparks Ltd.
Last year, Adani Logistics had said it has signed a definitive agreement to acquire 40.25 per cent stake in Snowman Logistics from Gateway Distriparks for Rs 296 crore. SID SID ANUANU