IFC Invests USD 6.5 Million In Bangalore Startup Snowman Logistics
IFC, a member of the World Bank Group, is providing a $6.5 million to India’s Snowman Logistics Limited, a cold chain logistics solutions provider, to support expansion of its cold storage division for efficient storage of farm products that will help reduce wastage and promote food security.IFC invested $5 million in Snowman in 2009 to expand efficient storage facilities across India. The additional investment will support Snowman’s capital needs during the company’s strategic growth phase, helping it become more efficient and expand in existing and new locations in India.
“We offer state of art cold storage services for commodities, which helps in promoting food security and stabilizing the prices,” said Mr. Ravi Kannan, CEO-Snowman. “The current expansion will help Snowman to emerge as a market leader by taking advantage of current and potential growth in the retail and food sector in India.”
About a third of India’s farm production is lost on account of wastage due to inadequate transportation and storage facilities. Non-availabiity of quality storage facilities also forces vendors to compromise on quality standards. Efficient food supply chain systems have a direct positive impact on food availability and help food producers’ access retail markets and preserve food quality. Strengthening agricultural logistics helps food storage, food security and price stability.
“IFC’s investment in Snowman will help lower overall logistics costs and reduce wastage associated with Snowman’s clients, most of which are in the agriculture and food sector,” said Anita M. George, IFC Director for Infrastructure in Asia. “This investment is in continuation to our existing relationship with Snowman”, she added.
Snowman provides cold chain services for a variety of products including, processed foods and pulps, sea foods, meats, ice creams, and dairy products. The project will help reduce wastage of food products, strengthen local supply chains, and improve the company’s environmental and social practices. Snowman’s temperature-controlled storage infrastructure is currently spread across 16 facilities in Mumbai, Chennai, Bangalore, Hyderabad, Kochi, Kolkata, Ludhiana, and Vishakapatnam.