Flipkart goes ahead to tie-up with Adani Group to boost its supply chain & tech infrastructure
In order to boost its supply chain and ramp up the technology infrastructure, Flipkart has joined hands with Adani Group. The move comes amid massive surge of Covid-19 cases that have pushed people to opt more online shopping, leading to escalated demand for the e-commerce services.
Under the agreement, Adani Logistics is going to construct a sprawling facility of 534,000 sq ft that would function as a fulfilment centre at its upcoming logistics hub in Mumbai and would be leased to Flipkart. The facility is expected to be operational during the July-September quarter. The capacity would be to store 10 million units of inventory. The information was released in a joint statement by the companies in agreement on Monday.
The agreement between Flipkart and Adani Group is also expected to boost local employment – at least 2500 direct jobs are expected to be created, apart from thousands of indirect jobs.
A third data centre would be also be set up by Flipkart at Adaniconnex’s facility based in Chennai. Adaniconnex is a new venture formed jointly by EdgeConneX and Adani Enterprises. Flipkart said, “The AdaniConneX data centre is a brand-new facility enabling Flipkart to design the data centre to its growing infrastructure needs with a significant focus on security and keeping data locally within India.”
Flipkart is owned by the Walmart group and shares the market in India with its competitors Amazon and Reliance. CEO of Flipkart said, “This (India) is a market where we will step on the gas to ensure we have the appropriate level of investments in areas like the supply chain, Walmart president and CEO Doug McMillon had said at a company event earlier this year. Although the penetration of e-commerce in the country is low, it is growing rapidly. We are well-positioned to grow as an emerging middle class spends more money through mobile phones.”