Management Discussion & Analysis Operations During the year the Company recorded a sales of Rs. 202.93 crores as compared to Rs. 153.41 crores, a growth of 32%, EBITDA. Rs. 47.02 crores as against Rs. 38.01 crore which is a growth of 24%. PBT of Rs. 14.73 crores as against Rs. 13.69 crores, growing at 8% and PAT Rs. 24.75 crores as against Rs. 22.48 crores which is a growth of 10%. During the year, warehousing capacities were added at Mumbai, Chennai, Bhubaneswar, Pune, Surat and Visakhapatnam, taking the total installed capacity from 61,700 pallets at the start of the year to 85,500 pallets which is a growth of 39%. A majority of our temperature controlled warehouses are ISO 14001 (TUV-SUD), ISO 22000 (TUV-SUD) and Foods and Safety Standards Authority of India certified. In the transportation division the fleet size increased from 370 to 501 trucks during the year rebrsenting a growth of 35%. outlook The outlook for the Company continues to be promising. All key segments, the Company is involved with such as ice-cream, dairy products, sea food, meat & poultry, processed foods, quick service restaurants continue to chalk up imbrssive growth rates. While food and related services will continue to be the main stay of the Company's business, opportunities await to be exploited in areas like F & V processing, pharma and e-commerce. Snowman is on track to achieve its expansion objectives. There is a tremendous demand for cold chain in India and only a very small part of this market is currently being catered by the organised players. With increase awareness of food safety and hygiene, customers have been moving to organised players. Hence Snowman's immediate focus will be to bridge this gap by ramping up capacities across the country. This would apply to the transportation division also. Competition The Indian temperature controlled logistics business is highly fragmented and is largely catered to by regional service providers with only 6-7% in warehousing and 15-20% in transportation catered to by organised operators. Further there are very few, if any, organised operators apart from Snowman who have a combrhensive pan-India brsence. In addition, a number of service providers operate only in one or the other sector i.e. either temperature controlled warehouse business or temperature controlled distribution business. Therefore, we compete against various operators in different business segments in different geographic locations in addition to the regional and / or unorganised service providers, whose scale of operations are significantly lesser than ours. Cautionary Statement Statements made in this report, particularly those which relate to Management Discussion and Analysis, describing the Company's objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might vary materially from those either exbrssed or implied. |