E-commerce giants are looking for land to build warehouses
The e-commerce business has boomed manifolds in India in the last few years. This has given a fresh lease of life to hundreds of land owners who bought land to build warehouses a few years back. However they were disappointed after a much touted policy of FDI in multi-brand retail became a non-starter. It looks like a spurt of activity in the online shopping business in India has given a fresh lease of life to them.
Flipkart raised $1 billion in a fresh round of funding. The American online retail giant Amazon did not want to lag behind and announced a war chest of $2 billion for India immediately after that. Amid an investment war, these companies have begun a massive hunt for warehousing facilities around the country.
Amazon is planning to lease over a million square feet of warehousing space within this calendar year. This will be done to set up what it calls ‘’fulfilment centres’’. Flipkart has recently leased 500,000 square feet of space across the country. Their team is busy in fitting them out to commission them before this Diwali.
A property consultant who has knowledge of Flipkart’s plans mentioned that Flipkart wants to gear up its supply chain for the Diwali rush. This rush is the equivalent of the Christmas sale season in the US. During that time the players like Amazon do a big chunk of their business. Indian e-commerce business is also looking at encashing the festive season’s shopping bonanzas.
Source- The Economic Times
E-commerce, FDI, Flipkart raised $1 billion, manifolds in India, multi-brand retail, warehouses
