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    Amazon, Flipkart to increase warehouses

    Synopsis

    Amazon’s India unit has contracted 2 million sq ft while Walmart-backed Flipkart has contracted 1 million sq ft across Bengaluru, Mumbai Metropolitan Region, Hyderabad, Pune, Ahmedabad, Lucknow and Coimbatore, said multiple persons aware of the development.

    Agencies
    These new facilities across major warehousing hubs will be up and running by end of this year under the built-to-suit model.
    Bengaluru|Mumbai: Ecommerce majors Amazon and Flipkart will lease over 3 million square feet warehousing space across major consumption centres as they expect a major bounceback in demand once the Covid-19 crisis ends.

    Amazon’s India unit has contracted 2 million sq ft while Walmart-backed Flipkart has contracted 1 million sq ft across Bengaluru, Mumbai Metropolitan Region, Hyderabad, Pune, Ahmedabad, Lucknow and Coimbatore, said multiple persons aware of the development.

    These new facilities across major warehousing hubs will be up and running by end of this year under the built-to-suit model as the companies look to expand their India footprint. These contracts had been in works even prior to the pandemic and are part of both Amazon and Flipkart’s India growth strategy. “Both the companies have picked up spaces for around 10 years with a lock-in period of five years each,” said one of the persons aware of the lease terms.

    Amazon did not confirm the deal but said, “Amazon India has more than 50 fulfilment centres with more than 26 million cubic feet of storage space across 13 states. We do not comment on things we may or may not do and cannot comment on upcoming fulfilment centres.”

    ET’s separate email query to Flipkart remained unanswered until the press time. “These companies are also actively leasing out short-term spaces to cater to growing demands from consumers,” said another person quoted above.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    2 Comments on this Story

    Vasudevan Nagarajan62 days ago
    We cannot blindly criticize all state governments as some are transparent and want the state economy to pick up. The timing, during investor meet and commitment to employment matter most. Indian entrepreneurs are smart and they have to find out a way to outsmart these cancerous growth of corruption in the Indian society.
    Narayan Joshi142 days ago
    INDIAN POLITICIANS HAVE SPOILED ANY BUSINESS OPPORTUNITIES & DEVELOPMENT TO SUCH AN EXTENTS THAT ANY BUSINESS OWNER HAVE TO PAY COMPULSORILY "POLITICAL PARTIES FUND'S UNDECLARED TAXES" LEADING TO HIGHER CAPEX REQUIREMENTS.INDIAN ENTREPRENEURS DON'T HAVE EXTRA ORDINARY KITTY TO PAY POLITICAL DOGS & HENCE ONLY MNCS FLOURISH IN INDIA.
    The Economic Times