New Delhi, India, April 9, 2012
— IFC, a member of the World Bank Group, is providing a $6.5 million loan to Snowman Logistics to help the food supply chain company expand its cold storage facilities in various locations in India, helping reduce wastage and promote food security.
IFC is supporting this growing company to foster efficiency and organization in the emerging logistics sector. An efficient farm-to-market cold food supply chain helps producers lower their distribution and inventory costs and access retail markets in a cost-effective manner.
“We offer state-of-the-art cold storage services for commodities, which promotes food security and stabilizes prices,” said Ravi Kannan, CEO of Snowman Logistics. “Expansion of our storage facilities will help Snowman be a leading player in the emerging retail and food sector.”
About a third of India’s farm production is lost on account of wastage due to inadequate transportation and storage facilities. In addition, the $390 million agricultural logistics industry is highly fragmented. Organized logistics companies can help farmers and food producers make their distribution effective, stabilizing prices.
“IFC’s investment in Snowman will help lower overall logistics costs and reduce wastage associated with Snowman’s clients, most of whom are in the agriculture and food sector,” said Anita M. George, IFC Director for Infrastructure in Asia. “This is an ongoing strategic partnership with Snowman.”
IFC had invested $5 million in Snowman in 2009 to help it add storage capacity across India. Snowman provides cold chain services for a variety of products, connecting more than 100 cities and distributing to more than 4,400 outlets. Its temperature-controlled storage infrastructure is currently spread across 16 facilities, including in Mumbai, Chennai, Bangalore, Hyderabad, Kochi, Kolkata, Ludhiana, and Vishakapatnam.
About IFC
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities - all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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