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Flipkart to invest over $2.5 billion on logistics, warehouses

  • Online marketplace
    Flipkart will invest a “couple of billion dollars” in the next few
    years on beefing up its logistics network as part of efforts to strengthen its
    position in the booming e-commerce industry, the
    Press Trust of India reported.
    • Online marketplace
      Flipkart will invest a “couple of billion dollars” in the next few
      years on beefing up its logistics network as part of efforts to strengthen its
      position in the booming e-commerce industry, the
      Press Trust of India reported.
    •  

    •  
    • Flipkart, which
      competes with Snapdeal and Amazon besides other smaller players, opened its
      largest warehouse in Telangana.
    •  
    • It plans expanding
      its network of warehouses across the country to speed up delivery of goods to
      consumers and will pump in $500 million over the next 4-5 years.
    •  
    • “The $500
      million is for warehouses… investments for logistics will be much bigger…
      it will be more than couple of billion dollars. It is a very long term
      investment plan over next 5-6 years,” Flipkart co-founder and COO Binny
      Bansal said.
    •  
    • Driven by increasing
      Internet population and growing preference for online shopping, e-commerce
      companies have witnessed a huge jump in sales.
    •  
    • Flipkart’s rival
      Snapdeal is investing $150-200 million in the ongoing fiscal to expand its
      delivery operations. It had also picked up a minority stake in logistics firm
      GoJavas.
    •  
    • While Snapdeal has 63
      fulfilment centres in the country, US-based Amazon has also been expanding its
      network of warehouses and has 21 such centres.
    •  
    • “Over the next
      4-5 years, the plan is to invest more than $500 million in warehousing in the
      country. We are hoping to build a network of 80-100 fulfilment centres across
      all states,” Bansal said.
    •  
    • He added that more
      than half of them will be in tier II and III towns.
    •  
    • The Telangana fulfillment
      centre, located in Medchal mandal of neighbouring Ranga Reddy district of
      Telangana, is spread over 2.2 lakh sq ft and holds storage capacity of 5.89
      lakh cubic ft. It would create over 17,000 direct and indirect employment
      opportunities within the area.
    •  
    • With the addition of
      the largest automated centre in Telangana, Flipkart now has 17 warehouses in
      the country.
    •  
    • Asked why the company
      chose Telangana, Bansal said south India is the biggest market for
      Flipkart, accounting for 40 per cent of its overall business.

     

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