On Monday, 12 April 2021, Flipkart announced a strategic and commercial partnership with the Adani group. The partnership is for the mutual benefits of both the top companies to further expand and grow their businesses.
Flipkart is a Walmart-owned e-commerce company and its growth in the online shopping market has been prevalent over the years. With an immense increase and demand to enhance its ability to serve the rapidly growing base of Flipkart customers, it is all set to partner with Adani Logistic Group to brace up Flipkart’s value chain of supply and logistics management infrastructure. Neither of the parties has disclosed the details of the transaction yet.
What the partnership comprises:
A 534,000 sq. ft. fulfilment centre at Ambani Logistics Limited’s upcoming logistic hub in Mumbai will also be leased to Flipkart as part of the Adani-Flipkart deal. The fulfilment centre will become operational by the Q3 of 2020. The homegrown e-commerce company is also looking forward to setting up its third data centre in Chennai at Adaniconnex, which is a joint venture between EdgeconneX and Adani. It is eagerly expected to be larger in area than Amazon fulfilment stores in India and about the size of 11 football fields that can easily accommodate 10 million units of inventory at once. Furthermore, not only Amazon but the partnership is all set to compete with Reliance Industries Ltd, one of the top companies in India. Flipkart plans to have private cloud deployments that would be one of the largest in the Country. The partnership between Flipkart and Adani Group will also lead to enhancing the growth of the company’s infrastructure needs to help store the data locally.
Flipkart’s growth, especially in Western India, is a gateway and opportunity for many sellers and MSMEs in the region. This will also lead to an upgrade in the need for more than 2,500 direct jobs and thousands of indirect jobs in the employment sector.
Prospects to look out for:
With the upcoming restrictions that the government is to impose on e-commerce marketplaces as well as digital businesses for the kind of data on Indian customers they will be allowed to store, share, and process as part of its non-personal data policy. Karan Adani, Chief Executive Officer at Adani Ports and Special Economic Zone, which own Adani Logistics, said that Flipkart’s partnership with Adani group is a perfect example of what Aatmanirbharta in self-sufficiency in India should be like. “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”, he added. Adani’s proficiency in the unique combination of logistics, real estate, green energy, and data centre infrastructure capabilities will help Flipkart to excel in all its physical as well as digital infrastructure needs.
Flipkart and Adani are two of the most leading brands in India. Although, in different segments, both the companies can set up an advantage for further advancements of collaborative exemplar for other home-grown brands in the nation. The partnership is a fruitful collaboration that will primarily focus on learning from each other and making it a hit in the market.