Amazon, Flipkart to increase warehouses

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.

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