Given the growing base of its customers, Flipkart is strengthening its logistics and data centre capabilities. The homegrown ecommerce player has entered into a strategic and commercial partnership with the Adani Group.
To strengthen its supply chain infrastructure, Flipkart will work with end-to-end logistics service provider Adani Logistics Limited. Besides, Flipkart will set up its third data centre at AdaniconneX Private Limited Chennai based facility, leveraging AdaniConneX's expertise and data centre technology solutions.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, "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. We are delighted to initiate our association with the Adani Group to strengthen our supply chain and technology infrastructure. At the Flipkart Group, we are focused on ensuring that our customers get access to a wide range of products made available by sellers across the country as we continuously innovate to drive greater affordability. Our logistics network and technology stack are instrumental in making this a reality. These investments will help us strengthen our presence and capabilities in India to support MSMEs and sellers while also accelerating job creation and growth."
Under this newly formed partnership, Adani Logistics Limited will construct a 534,000 sq. ft. fulfilment centre in its upcoming logistics hub in Mumbai that will be leased to Flipkart to address the growing demand for e-commerce in Western India and support market access of several thousands sellers and MSMEs in the region. This centre is likely to be operational by Q3 2022 and will have the capacity to house 10 million units of sellers' inventory at any point.
According to Flipkart, the facility will also enhance local employment and create ~2,500 direct jobs and thousands of indirect jobs. Flipkart's third data centre will be developed at the AdaniConnecX facility and will be designed to be reliable, secure and sustainable. 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.
"This broad-ranging partnership across our logistics and data centre businesses is a unique business model, and we see this as a great opportunity to serve Flipkart's physical as well as digital infrastructure needs," says Karan Adani, Chief Executive Officer of Adani Ports and Special Economic Zone (APSEZ).