One of the key aspects of the NLP is its focus on encouraging the use of technology.

Sunil Nair, CEO, Snowman Logistics

How do you view the progress of Indian warehousing & logistics sector in the past couple of years?

The warehousing & logistics sector in India has made significant progress over the past couple of years. One notable growth area is the cold chain industry, which has experienced promising trends. Sectors such as QSR, FMCG, Dairy, and Seafood have dominated the cold chain industry, with an increase in volume by 15 per cent or more YoY. The growth in this sector is driven by increased demand for perishable items such as fruits and vegetables, dairy products, medications, and frozen food products.

Despite development, the cold chain sector has lacked investment. This is a challenge since an adequate supply of cold storage and transportation is required to meet the increased demand. However, government efforts such as the National Logistics Policy (NLP) and PM GatiShakti are intended to boost investment in the industry.

The rise of organised retail, e-commerce, and the pharmaceutical industry is also fueling the growth of India's warehousing and logistics sector. These industries require efficient cold-chain logistics services to ensure their product's safety and timely delivery. Consequently, domestic and international investors are showing keen interest in investing in cold chain infrastructure and technologies in India.

Snowman Logistics, a prominent player in the cold chain industry, has experienced significant growth over the past year. We have launched 5PL services, and by that, we are the first company to introduce this service in the cold chain logistics and supply chain management sector in India. By offering a diverse range of services and leveraging our expertise in the food and pharma industries, we have become a preferred partner for all our customers seeking experienced handling of their products in the cold chain.

Despite the progress, the warehousing and logistics sector has faced challenges such as fuel price increases and capacity shortages in specific locations.

What is your take on the new Logistics Policy as a catalyst of growth?

We see the National Logistics Policy (NLP) as a significant catalyst for growth in the industry. The NLP is a commendable initiative by the Indian government to strengthen the country's overall logistics infrastructure and assist its growth. The strategy intends to simplify the process across the country by addressing transportation, warehousing, and distribution challenges.

One of the key aspects of the NLP is its focus on encouraging the use of technology, including cold chain management systems, to ensure the transportation and storage of goods in optimal conditions. Looking ahead, the logistics industry can expect significant changes in the next 3-5 years. The NLP is bringing standardisation to the sector, which will help create a more efficient and integrated ecosystem.

However, effective implementation, timely execution of policies, and addressing industry challenges will be crucial to fully realise the growth potential offered by the NLP. By embracing these opportunities and preparing for future volumes, the industry can position itself for sustained growth and success in the evolving logistics landscape.

What are the key challenges faced by the sector in spite of the progressive steps from the government? What is the way forward?

The cold chain logistics industry in India faces several challenges despite the progressive steps taken by the government. One of the major challenges is the lack of adequate infrastructure, which makes it difficult to maintain an efficient cold chain throughout the supply chain. Additionally, inadequate transportation facilities and poor road conditions further complicate the transportation of temperature-sensitive products.

Another important issue affecting the sector is a lack of skilled staff, particularly in rural regions, capable of conducting cold chain logistics operations. To maintain temperature control and guarantee a seamless supply chain operation, thorough training and education in the handling of pharmaceutical products is required.

Another challenge is the high cost of cold chain logistics infrastructure and equipment, which can be expensive for small and medium-sized businesses. This can restrict the industry's potential growth by making it harder for smaller businesses to compete with bigger ones.

Despite these obstacles, the cold chain logistics business may move forward by investing in the building of unique infrastructure that will streamline supply chain operations. Furthermore, businesses can collaborate with the government to create a more favourable environment for the sector, such as greater infrastructure development initiatives and regulations focusing on teaching and training more people in cold chain logistics operations.

What are the major innovations from the company in its operations?

At Snowman Logistics, we have implemented several innovations to meet the growing demands in the logistics/warehousing market. This includes increasing pallet capacity, expansion of our fleet size, entry into the hazardous chemical storage market, strategic network distribution, and advanced technology adoption.

Over the years, we have increased our pallet capacity from 90,000 to 135,332 pallets. This expansion allows us to cater to the growing demand for cold storage facilities in India. Additionally, we have a fleet of 450 trucks and have recently ordered 50 new trucks to meet the specific needs of its customers, demonstrating its commitment to supporting end-to-end operations.

We have also ventured into the hazardous chemical storage market by establishing an A-Grade warehouse in Shoolagiri, Tamil Nadu. This facility has a capacity of 5,500 pallets and is equipped with state-of-the-art storage and handling equipment, along with 24-hour monitoring and fire prevention systems.

Furthermore, we have strategically distributed our network of cold storage facilities across 19 major cities in India, operating a total of 44 warehouses across the country.

 What is the strategy of the company to stay competitive in its respective segment? What are the future plans of the company to enhance its operations in future?

To ensure our company's competitiveness in its respective segment, we have implemented three important strategies for the current financial year:

5PL service: We have introduced a 5PL (Fifth Party Logistics) solution to provide additional services to our customers and become an integral part of their organisation. This allows us to take on more responsibilities at a lower cost. We are investing in our IT infrastructure and sourcing procedures to support this initiative, aiming to demonstrate the value it brings to specific customer groups and unlock significant growth potential.

A-grade chemical warehouse: In a new venture, we have established an A-grade hazardous chemical warehouse in Shoolagiri. This facility spans 50,000 sq ft and can accommodate up to 5,500 MTs of goods with G+5 racking. This warehouse offers a secure and efficient storage solution for hazardous chemicals, is equipped with modern storage and handling equipment, and is compliant with all necessary safety regulations.

Snowlink: Our technology platform, Snowlink, acts as an aggregator of transport capacities across the country. It has shown a remarkable growth of 50 per cent compared to the previous year and presents a high-potential vertical for our company. Many transporters have expressed interest in joining us to provide end-to-end services to our customers. While we face competition from regional players, we strive to be leaders in all aspects of the cold chain. To achieve this, we continuously upgrade ourselves, leveraging advanced technologies like temperature monitoring sensors, automated inventory management, and transportation systems.

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