Two big names; Flipkart & Adani are looking for a dynamic collaboration that will eventually bring benefit to the country. There has been a news on Monday that the two business houses will collaboratively set up huge data, fulfilment centers across the nation.
The insights into the news can be taken by looking into details. Let’s go ahead.
INSIGHT INTO THE MATTER
Adani has successfully made its biggest move to enter the electronic space by entering into an arrangement with Walmart backed Flipkart on Monday. This agreements is basically made to set up country’s biggest warehousing hubs & data centres.
It will surely give a straight away competition to rivals like Walmart, Amazon and very specifically Reliance which is ready with its Jiomart in digital retail space.
- The plans up till now are to build a 5.34 lakh Sqft Fulfilment centre in Thane, Mumbai, Maharashtra that will be made by Adani Logistics but leased to Flipkart.
- It will consist of warehouse that will have 1 crore unit storage capacity.
- Flipkart on the other hand will build a data centre at Adaniconnex. It will be a joint venture between Edge Connex & Adani Enterprises.
Gautam Adani on social media platform twitter made its grounds clear by stating that Flipkart is our new strategic partner and it will lead to creation of thousand jobs in the city Mumbai. The project is expected to strike grounds by 2022.
Flipkart already has two data centers in Hyderabad & Chennai. This will be the third on the list.
Karan Adani, CEO, APSEZ said: “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.”
INDIA’S WAREHOUSING DETAILS
Traditionally logistics was not looked as a lucrative mode to tap the market. But now the scenario has changed. The market by 2024 is expected to reach Rs. 2821.1 billion with a growth rate of 13.57%. The prominent details regarding the warehousing capacity are:
- As of December 2020; the space allocated for warehousing is 238 million sq.ft.
- Opening of warehouses in tier I & tier II cities will be the top most priority.
- The major space is occupied by Flipkart, Amazon, Delhivery, Diamond Beverages Pvt. Ltd., Stellar and Phillips.
- The projected investment will be close to Rs. 691 billion in the next 4-5 years.
- The market is at large dominated by unorganized players.
The stakes in the competitive space are quite large.The CEO of Flipkart Kalyan Krishnamurthy clearly stated that this move is very strategic as it will be a unique combination of logistics, real estate, green energy and data centre infrastructure.
Flipkart is in recent mood to acquire therefore it has started capturing markets by partnering with Mahindra Logistics and Aditya Birla Fashion Ltd. This is being done to deepen the verticals in all segments. The plans are to set up hubs in Manesar & Kolkata also.
The scope of data storage, traffic, warehousing & logistics is expected to soar as the reliance on e-commerce is increasing day by day.
