Snowman Logistics Shares Jump 6% on Plan to Build 10,000-Pallet Hyderabad Facility

Synopsis: Shares of Snowman Logistics Ltd are likely to remain in focus after the company announced the establishment of a 10,000-pallet temperature-controlled warehouse in Hyderabad. 

The new facility, being developed under an asset-light Built-to-Suit (BTS) model, will strengthen the company’s presence in one of India’s fastest-growing cold chain markets and increase its total storage capacity to over 1.64 lakh pallets across the country.

Shares of Snowman Logistics Limited were trading at Rs 38.49, up by 6.47  percent from the previous close of Rs 36.15. The stock opened at Rs 36.85, touching an intraday high of Rs 38.59 and a low of Rs 36.06. The company currently commands a market capitalisation of Rs. 634 crore.

Snowman to Add 10,000-Pallet Cold Storage Facility

Snowman Logistics announced that it will set up a 10,000-pallet temperature-controlled warehouse in Hyderabad, with construction already underway. The facility is expected to become operational by Q2 of next year and will support storage requirements across a wide temperature range of -25°C to +20°C, enabling the company to cater to frozen, chilled, and ambient products under a single roof.

The warehouse is being developed under a Built-to-Suit (BTS) model, where the infrastructure is specifically designed to meet the operational requirements of the tenant while allowing Snowman to expand through an asset-light strategy. This approach helps reduce upfront capital expenditure, improves capital efficiency, and enables faster network expansion compared to owning and constructing facilities independently.

Strategic Location 

The upcoming facility is strategically located along the NH-44 corridor in Hyderabad’s northern logistics belt, offering efficient connectivity to key consumption and distribution centres across Telangana and Andhra Pradesh.

Management highlighted that the region is witnessing increasing demand for temperature-controlled storage, driven by rapid growth in industries such as seafood, ice cream, quick-service restaurants (QSRs), fruits & vegetables, and pharmaceuticals. These sectors require reliable cold chain infrastructure to preserve product quality and ensure timely deliveries, making Hyderabad an important expansion market for the company.

National Cold Chain Network

With this addition, Snowman’s storage capacity in Hyderabad will increase from 6,800 pallets to 16,800 pallets, significantly strengthening its regional presence. At the national level, the company’s total cold storage capacity will increase from 154,319 pallets to 164,319 pallets, spread across 21 cities, further expanding its pan-India cold chain network.

Commenting on the expansion, Ishaan Gupta, Director of Snowman Logistics, said Hyderabad represents a strategically important market, and the new facility will improve the company’s ability to serve emerging consumption centres while leveraging the location’s strong connectivity for efficient regional distribution.

Why This Expansion Matters

The announcement reinforces Snowman’s strategy of expanding its cold chain infrastructure in high-growth consumption hubs while maintaining an asset-light business model. Unlike conventional warehouses, temperature-controlled facilities serve industries where uninterrupted cold storage is critical to product quality, regulatory compliance, and supply chain efficiency.

By increasing capacity in Hyderabad, the company is positioning itself to benefit from rising demand for organised cold storage, particularly as India’s food processing, pharmaceutical, and quick-commerce ecosystems continue to expand.

While the addition of 10,000 pallets may appear modest relative to Snowman’s nationwide network, it represents a 6.5 percent increase in the company’s existing storage capacity. More importantly, the investment strengthens its footprint in a strategically important logistics corridor where demand for temperature-controlled warehousing continues to outpace supply.

The Built-to-Suit (BTS) model also reflects disciplined capital allocation, allowing Snowman to scale its network with lower capital intensity while improving return on invested capital. Investors will closely monitor occupancy levels, capacity utilisation, and further network expansion as key indicators of earnings growth.

Industry Outlook

Cold chain logistics in India is expected to grow due to rising demand for frozen foods, dairy, pharmaceuticals, seafood, organised retail, and quick-service restaurants. Modern cold storage infrastructure investments are accelerated by rising demand for temperature-sensitive products, stricter food safety regulations, and the rapid growth of e-commerce grocery platforms.

Long-term structural trends should benefit companies with a nationwide network, diversified customer base, and scalable asset-light expansion strategies. Organised cold chain operators will grow through capacity utilisation, occupancy rates, and expansion into high-demand logistics hubs.

Snowman Logistics Limited is one of India’s leading integrated cold chain logistics companies, offering temperature-controlled warehousing, refrigerated transportation, and value-added logistics solutions. With the proposed Hyderabad facility, the company will operate a network of 164,319 pallet positions across 21 cities, catering to industries such as food processing, dairy, seafood, pharmaceuticals, and quick-service restaurants.

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