Snowman was initially promoted by Amalgam group in 1997. Subsequently, three Japanese companies viz. Mitsubishi Corporation, Mitsubishi Logistics Corporation and Nichirei Logistics Group acquired a significant stake in Snowman. In November 2006, Gateway Distriparks Ltd. (GDL) acquired a majority stake in Snowman. Today, GDL has the management control and the Sponsor and holds 53% stake in Snowman. The other major shareholders - Mitsubishi Corporation (MC), Mitsubishi Logistics Corporation (MLC) and Nichirei Logistics Group together hold approx 26% of Snowman. IFC holds 19.9% equity stake by virtue of its equity investment in 2010.

Snowman has drawn up a capital expenditure plan of about $ 28 million for expansion of its storage facilities in various locations in India. The major costs of expansion are civil work, lease costs, refrigeration systems, material handling equipments, electrification, fleet and IT augmentation, furniture and fixtures etc. Snowman proposes to implement the expansion plan over the medium term. IFC’s proposed contribution to the same will be about $ 6.5 million by way of long term debt.

6.64 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.64
Equity

* These investment figures are indicative

Snowman is headquartered in Bangalore, India and its present temperature controlled storage infrastructure is spread across 16 locations including Delhi, Mumbai, Bangalore, and Chennai. As a part of the Project Snowman intends to expand in some of these existing and new locations in India.

This repeat investment will have a strong development impact by helping build efficient agriculture supply chain solutions in India. Additionally, the investment will help in (a) building competitiveness as the development of an efficient supply chain will help reduce waste and losses as well as reduce logistics costs, (b) providing an opportunity to local businesses to outsource their distribution functions and lower their distribution and inventory costs. Further, IFC''s repeat investment will provide a strong demonstration effect, signaling IFC''s faith in the TCL sector. This should aid the sector and Company in attracting new private capital in future. Finally, this expansion is expected to create additional jobs.

(1) IFC is providing the first round of debt capital in a growing company in an emerging sector.
(2) IFC''s proposed investment will provide patient capital and help in future fund raising.
(3) IFC''s initial investment in Snowman encouraged the Company to adopt a structured framework to manage its social and environmental systems, thereby acting as a benchmark for the TCL sector. IFC''s repeat investment and continued involvement will allow it to further strengthen and continue to maintain the existing E&S framework in place.
(4) IFC''s initial investment brought in much needed capital and aimed at providing a strong signal of support to the agriculture infrastructure sector in India, which faces difficulty in attracting sufficient private capital. IFC''s repeat investment will therefore signal IFC''s continued confidence in the viability of the agriculture infrastructure sector in India.

This is a Category B project because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Further, it is possible to readily design and implement engineering and management measures to mitigate the limited adverse impact.

The key risks and aspects associated with this provisional category B investment are: effective deployment of its current social and environment management system including the ISO 14001 certified EMS during construction and operation of the facilities proposed under this investment; enhancement of corporate capacity and as required staffing to implement the projects in accordance with the Performance Standards and to engage with communities in the vicinity of the facilities; ensuring fair, safe and healthy working conditions (for employees, drivers and those engaged through contractors); appropriate vehicle safety and maintenance; emergency preparedness and response; driver and employee training on health and safety; conservation of energy, water and avoidance of ozone depleting substances in design, construction and operation of facilities; management of air emissions, wastewater discharges and solid and other waste disposal; handling and management of hazardous materials and hazardous wastes; vehicle (new and existing) emissions and energy efficiency; community health, safety and security with regard to construction and operation of cold storage facilities, waste management/disposal, vehicle operations and emergency response; and site selection and fair and transparent purchase of land for new facility construction.

Snowman will implement its existing SEHSMS and HR Policies in the proposed new facilities as well. Accordingly, the Company has presented plans to address the relevant impacts of its operations and to ensure that the proposed Investment will, upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and IFC Performance Standards. The detailed discussion about how these potential impacts will be addressed by the Company is summarized in the Environmental and Social Review Summary (ESRS) also disclosed together with this document.