Flipkart moves into a strategic and commercial partnership with an infrastructure company Adani Group. The collaboration intends to set up a data center and fulfillment center, reported Flipkart on April 4, 2021.
Flipkart will undoubtedly benefit from the end-to-end logistics services of Adani Logistics Ltd, which is a subsidiary of Adani Ports and amp; Special Economic Zone Ltd, strengthening the supply chain infrastructure. Also, the ability to serve a growing list of customers will improve.
Flipkart will set the third data center at AdaniConneX Pvt Ltd’s Chennai-based facility in India, which will implement AdaniConneX’s data center technology solutions. It is a new joint venture between EdgeConneX and Adani Enterprises Ltd.
Plan and results of partnership
Adani Logistics plans to construct a 5,34,000 sq ft. fulfillment center in an upcoming logistics hub in Mumbai. This center will be given to Flipkart on lease to address the growing demand of e-commerce in Western India and become a backbone to thousands of sellers and MSMEs in the area. It will commence operations in the third quarter of 2022 and can give place to 10 million units of sellers’ inventory at any time. The facility is anticipated to create 2,500 direct jobs and thousands of indirect jobs for supporting Flipkart’s supply chain infrastructure and equally support MSMEs and sellers.
Karan Adani, CEO, Adani Ports and Special Economic Zone (APSEZ), said, “I am delighted to see two of India’s fastest-growing businesses come together to help build some of the most critical as well as state-of-the-art infrastructure that our nation needs. This is what Atmanirbharta should be all about. 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.”
We agree that Flipkart has been instrumental in defining e-commerce adoption in India due to the value creation for customers and technological innovation for serving the customers. “We look forward to a long and fruitful partnership as we focus on learning from each other as well as leveraging our mutual strengths to prioritise consumers and development of India’s MSME ecosystem,” Adani added.
Kalyan Krishnamurthy, CEO, Flipkart Group, said, “What it (Adani Group) brought to us was a unique combination of logistics, real estate, green energy, and data center infrastructure capabilities. We are delighted to initiate our association with the Adani Group to strengthen our supply chain and technology infrastructure.”
He added, “At the Flipkart Group, we are focused on ensuring that our customers get access to a wide range of products made available by sellers across the country as we continuously innovate to drive greater affordability. Our logistics network and technology stack are instrumental in making this a reality. These investments will help us strengthen our presence and capabilities in India to support MSMEs and sellers while also accelerating job creation and growth.”