Flipkart inks pact with Adani Group, partnership to create 2,500 direct jobs

On Monday, Flipkart announced a commercial alliance with the Adani Group to improve the Walmart-owned company's logistics and data centre capabilities while also creating around 2,500 direct jobs.

Flipkart will collaborate with Adani Logistics Ltd., a wholly-owned subsidiary of Adani Ports and Special Economic Zone Ltd., in this two-pronged alliance to improve its supply chain infrastructure and further strengthen its capacity to support its increasingly increasing customer base, according to a statement.

Flipkart will also open its third data centre at Adaniconnex's Chennai facility, utilizing the latter's capabilities and industry-leading data centre technology solutions, according to the company.

EdgeConneX and Adani Enterprises Ltd. have formed Adaniconnex, a new joint venture.

The partnership's financial details were not announced.

A as part of this collaboration, Adani Logistics Ltd. will establish a 5.34 lakh sq. ft fulfilment centre (warehouse) in its new logistics hub in Mumbai, which will be rented to Flipkart to fulfil the needs for e-commerce in western India and facilitate market access for thousands of sellers and MSMEs in the area.

The facility, which will use cutting-edge technology, is scheduled to open in the third quarter of 2022 and will have the ability to store 10 million units of sellers' inventory at any given time.

The facility would boost local employment by 2,500 direct jobs and thousands of indirect jobs, in addition to expanding Flipkart's supply chain infrastructure to support MSMEs and sellers.

The data centre was built to the highest standards of efficiency, protection, and sustainability, leveraging the Adani Group's capacity to generate and source green power as the country's largest solar player.

The AdaniConneX data centre is a new facility that allows Flipkart to design the data centre to meet its increasing infrastructure needs while putting a strong emphasis on data-security in India.

Mr. Karan Adani, Chief Executive Officer of Adani Ports and Special Economic Zone (APSEZ), said, “I am glad to see two of India's fastest-growing companies join forces to help develop a few of our country's most important and cutting-edge infrastructure. This is what the Atmanirbharata (self-reliance) is supposed to be about.”

He added, “This large collaboration across the logistics and data centre sectors is a unique business model, and it's a fantastic opportunity to support Flipkart's physical and digital infrastructure needs.”

 

Flipkart Group Chief Executive Officer, Mr. Kalyan Krishnamurthy said, “The Adani Group's approach to infrastructure development in India is unparalleled. It provided us with a one-of-a-kind mix of logistics, real estate, renewable energy, and data centre infrastructure.”

He said, “As it continues to innovate to drive growth, the Flipkart Group is committed to ensuring that consumers have access to a wide variety of products made available by sellers across the country.”

He said, “Our logistics network and technology infrastructure have played a critical role in making this possible. These investments will enable us to boost our presence and expertise in India, allowing us to better support MSMEs and sellers while also boosting employment creation and further development.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.