Flipkart is India’s biggest online store for Mobiles, Fashion (clothes and shoes), Electronics, Home Appliances, Books, Jewelries, and basically everything. On Monday, Flipkart announced that it had entered into collaboration with Adani Group. The partnership is part of the company’s plans to strengthen logistics and data centre ability of the company, as well as create at least 2,500 new jobs. In a statement by Flipkart, the company will through this new partnership work hand-in-hand with Adani Logistics Ltd. (a wholly-owned subsidiary of Adani Ports and Special Economic Zone Ltd.) to strengthen its supply chain infrastructure and also enhance its ability to meet the needs of its continually increasing customer base.
Flipkart as part of the deal will set up its third data centre at Adani Connex’s facility based in Chennai. Flipkart will take advantage of Adanni Connex’s expert and industry leading data centre technology solutions to maximize its production and output. The financial details between Flipkart and Adani Group were not disclosed at all but Adani Logistics Ltd. will construct a 5.34 lakh sq ft fulfillment centre (warehouse) in its imminent logistics hub in Mumbai which will be leased to Flipkart. This comes as part of the deal between the two firms. The warehouse that will be leased to Flipkart will be used to battle the ever-growing demand for e-commerce in Western India as well as support market access of several thousands of sellers and MSMEs in the region.
The new fulfillment centre (warehouse) is expected to be operational in the third quarter of next year and should be able to accommodate 10 million units of seller’s inventory at any point. The centre will also be built up to modern taste. According to the statement put out, the facility’s operations will require people to run it, therefore 2,500 direct jobs and thousands of indirect jobs will be created as a result. The facility will also strengthen Flipkart’s support chain infrastructure and increase the company’s ability to support more sellers and MSMEs.
Karan Adani; the Chief Executive Officer of Adani Ports and Special Economic Zone said that “I am delighted to see two of India’s fastest growing businesses come together to help build some of the most critical as well as state-of-the-art infrastructure that our nation needs. This is what Atmanirbharata should be all about”.
“The Adani Group is unmatched in the way it has gone about building infrastructure across India. What it brought to us was a unique combination of logistics, real estate, green energy, and data centre infrastructure capabilities”, Flipkart’s Chief Executive Officer said.
While Flipkart is working to increase its supply chain, its partnership with Adani Group will go a long way in tackling unemployment problems in the country in its own little way.