Flipkart looks to invest Rs 5,000 crore in logistics parks; to generate 50,000 jobs
Online shopping giant Flipkart is reportedly going to invest Rs 5,000 crore to set up logistics parks to create 50,000 jobs.
The online retailer is acquiring 300 acres of land in Karnataka, Gurugram and West Bengal to set up logistics parks as part of its strategy to expand footprint in the country, as per a Business Standard report. Construction is expected to begin shortly in West Bengal, the report further said.
The expansion is likely to give the Walmart-owned company an edge over rival Amazon to dominate the e-commerce opportunity in the country. Flipkart, which is locked in an intense battle for market leadership in India with American retail giant, has recently opened a new database centre in Hyderabad, its second such facility in the country. The new infrastructure will help Flipkart tap the "next 200 million customers", a spokesperson told the daily.
Media reports suggested that US-based Amazon is also expanding its warehouse capacity, and it has reportedly bought additional logistics space in Hyderabad.
Walmart CEO Doug McMillon, who visited India last week, had expressed satisfaction at the progress made by Flipkart and said that Walmart is committed to the Indian market given the huge opportunity that the country presents. McMillon, who was on a two-day trip to Bengaluru, interacted with Flipkart's leadership team and also assured continued commitment towards taking e-commerce to next 200-300 millions customers in India.
Last month, Walmart had invested Rs 763 crore in its step-down subsidiary PhonePe, which was acquired by Flipkart in 2016.
Edited by Chitranjan Kumar