Flipkart signs deal with Adani Group to increase logistics, supply infrastructure and capacity

Flipkart, the Indian domestic e-commerce company on Monday announced of the company establishing a strategic and commercial relationship with the Adani Group, Gautam Adani’s conglomerate.

CEO of Adani Ports and Special Economic Zone, Karan Adani 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 Atmanirbharata should be all about.”

Adani Group in a regulatory filing said that Flipkart would partner with Adani Logistics Limited to expand Flipkart's supply chain infrastructure and improve its capacity to cater to its increasingly rising customer base.

Flipkart will work in collaboration with Adani Logistics Ltd and create around 2500 direct jobs in the process, enhancing local employment opportunities.

Adani Group head, Gautam Adani tweeted about the progressive deal between the two companies.

Adani Logistics Ltd will construct a 5.34 lakh sq ft warehouse in its upcoming logistics hub in the city of Mumbai, which will be rented to Flipkart to meet the increasing demand for e-commerce in western India and enable market access for thousands of sellers and MSMEs in the region, as part of this collaboration.

This warehouse will be entirely functional in the third quarter of 2022 and is expected to possess a capacity of 10 million units of sellers’ inventory, according to a statement released.

Flipkart will develop its third data centre which will help it increase its security when it comes to storing its data locally. The data centre will be designed in Chennai at Adaniconnex Private Limited, which is established by EdgeConneX and Adani Enterprises Limited as a joint venture.

Kalyan Krishnamurthy, the chief executive of Flipkart spoke on the signing of the deal, “The Adani Group is unmatched in the way it has gone about building infrastructure across India. What it brought to us was a unique combination of logistics, real estate, green energy, and data centre infrastructure capabilities.”