Snowman Logistics Ltd has signed a MoU with the government of Andhra Pradesh to set up a temperature-controlled warehouse in Sri City, a special economic zone located in Chittoor District of the state. Snowman will invest approximately Rs 30 crore in this project which will mainly cater to existing and upcoming food processing units in Sri City.
Snowman plans to build a 10,000-pallet position multi-temperature cold storage in a phased manner, starting with 5,000 pallet positions in Phase I. The project will be financed mostly from internal accruals.
Sri City—an integrated business city, as it is called, has become one of the most attractive manufacturing locations for food brands. With a well laid out industrial park, most multinational and national food brands have already occupied land parcels to set up manufacturing plants. Sri City is well connected by road, rail and sea network. At just 55 km from Chennai, it is also an attractive location to cater to exim volumes. Thus, with focus on food and import/export, Sri City has emerged as an upcoming location for the FMCG and agri-based volumes of Snowman. Availability of water and power is another attraction. With GST round the corner, Sri City can become a major point of consolidation.
“We are excited about this project. This aligns with our strategy to provide pan-India network to our clients from source-to-stores,” said Mr Sunil Nair, Chief Executive Officer, Snowman Logistics.