Flipkart, the e-commerce arm of America’s largest retail company, Walmart has announced on Monday that it had entered into a commercial partnership with the Adani Group. The partnership aims to strengthen Flipkart’s logistics and data centre capabilities. More than 2,500 people will get direct employment through this partnership between the two companies.
The need for this partnership
Flipkart said in a statement that under this partnership, Flipkart will work with Adani Logistics Limited, a wholly-owned subsidiary of Adani Ports Limited and Special Economic Zone Ltd. Flipkart signed this partnership to strengthen its supply chain infrastructure and increase its capabilities to serve its rapidly growing consumer base.
Homegrown e-commerce giant Flipkart is our new strategic partner. In the two-prong partnership, AdaniConneX will build their new Tier 4 data centre and Adani Logistics, India's leader in logistics, will build their 534,000 sqft fulfilment centre. Thousands of new jobs in Mumbai.— Gautam Adani (@gautam_adani) April 12, 2021
Also read: Flipkart Entered Into Hyper Local Delivery Segment; ‘Flipkart Quick’ Will Deliver You Within 90 Minutes
Besides, Flipkart will set up its third data centre at AdaniConneX’s Chennai plant, whichis a joint venture between EdgeConneX and Adani Enterprises Limited. However, the financial details of this partnership are not yet revealed.
What is proposed under this partnership?
Under this partnership, Adani Logistics Limited will build a 5.34 lakh sqft warehouse at its upcoming logistics hub in Mumbai, which will be leased to Flipkart to meet the growing demand for e-commerce in Western India. The statement said that the centre will be equipped with state-of-the-art technologies and is expected to be operational in the third quarter of 2022.
The centre will have the capacity to hold one crore units available for sale. The company said that this partnership will strengthen Flipkart’s supply chain, help small and medium businesses and provide direct employment to 2,500 people and indirect employment to thousands.
On the other hand, the data centre will be designed to meet the highest standards in reliability, security and stability. The centre will use Adani Group’s solar energy. Flipkart Group CEO Kalyan Krishnamurthy said that the Adani Group is unmatched in infrastructure manufacturing across India. It will provide us with a unique mix of logistics, real estate, green energy and data centre infrastructure capability.