Flipkart ties up with Adani Logistics to boost supply chain; Adani promises 'thousands of new jobs'

Homegrown e-commerce platform Flipkart on Monday announced a strategic and commercial partnership with the Adani Group. Flipkart will work with Adani Logistics Limited to strengthen its supply chain infrastructure and improve services for its customers, both the firms confirmed in their statements.

Adani Logistics will construct a 534,000 sq. ft fulfilment centre in its upcoming logistics hub in Mumbai that will be leased to Flipkart. Additionally, the facility will enhance local employment and create 2,500 direct jobs and thousands of indirect jobs, Adani Group added.

"In addition to strengthening Flipkart's supply chain infrastructure to support MSMEs and sellers, the facility will enhance local employment and create 2,500 direct jobs and thousands of indirect jobs," according to the regulatory filing.

Speaking on the strategic partnership between the two companies, Adani Group chairman Gautam Adani tweeted, "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".

According to the companies' statements, the fulfilment centre is expected to be operational in the third quarter of FY22. The centre will have the capacity to house 10 million units of sellers' inventory at any point.

Through this partnership, the e-tailer will develop its third data centre at the Adaniconnex Private Limited, a Chennai based facility, to bolster its growing marketplace e-commerce business in the country.  Adaniconnex is a new Joint Venture formed between EdgeConneX and Adani Enterprises Limited.

"The AdaniConneX data centre is a brand-new facility enabling Flipkart to design the data centre to its growing infrastructure needs with a significant focus on security and keeping data locally within India," the companies confirmed in a press release.

Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, "The Adani Group brought to us a unique combination of logistics, real estate, green energy, and data centre infrastructure capabilities. We are delighted to initiate our association with the Adani Group to strengthen our supply chain and technology infrastructure.  These investments will help us strengthen our presence and capabilities in India to support MSMEs and sellers while also accelerating job creation and growth".

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