The share price of Snowman Logistics rallied over 14 percent in early trade on Thursday after the company announced a strategic partnership with Dr Reddy’s Laboratories to provide temperature-controlled end-to-end logistics solutions for the delivery of the two-dose Sputnik COVID-19 vaccine across India.
Snowman will manage the delivery through five of its high-capacity temperature-controlled warehouses in Mumbai, Delhi-NCR, Kolkata, Chennai, and Bengaluru, the company said in a regulatory filing.
The logistics service provider will offer storage, order processing, shipper packing and secondary transportation from these locations.
"The locations are strategically located to take care of not just the state distribution, but the whole of the regional requirements. The temperature, throughout, will be maintained between -20 degrees Celsius and -25 degrees Celsius. With this, Snowman will be the largest 3PL service provider for vaccines in the country offering national reach to Dr Reddy's Lab," the company statement said.
Snowman Logistics has the capability to readily store 650 million doses at any given time, which can be increased to 1.05 billion doses with a short notice for Pan-India distribution, it said.
The company has the ability to store at up to -80 degrees Celsius, and provides real-time temperature monitoring to ensure the correct conditions for vaccine distribution during the entire supply chain.
Snowman Logistics has a capex plan of roughly Rs 425 crore for capacity expansion, with a focus on the pharma and e-commerce sector where the company has seen huge increases in demand since the onset of the pandemic, especially as there is a dearth of capacities in the organised sector.
At 9:50 am, the stock was trading 9.25 percent higher at Rs 56.10 apiece on the BSE.