Flipkart to ally with Adani to strengthen logistics, data centre infra

Flipkart has signed a strategic and commercial partnership with the Adani Group to strengthen the e-commerce company’s supply chain, the two announced on Monday.

Flipkart will work with Adani Logistics, which is owned by Adani Ports & Special Economic Zone Limited. In addition, Flipkart will set up its third data centre at Adaniconnex Private Limited’s facility in Chennai. Adaniconnex is a new joint venture between EdgeConneX and Adani Enterprises Limited.

As part of this partnership, Adani Logistics will construct a 534,000 sq. ft. fulfilment centre at its upcoming logistics hub in Mumbai that will be leased to Flipkart to address the growing demand for e-commerce in Western India.

“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,” said Kalyan Krishnamurthy, Chief Executive Officer (CEO) of Flipkart Group.

The centre is expected to be operational in Q3 2022 and will have the capacity to house 10 million units of sellers’ inventory at any point. 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.

The other part of the partnership will see Flipkart developing its third data centre at the AdaniConnecX facility.

“This broad-ranging partnership across our logistics and data centre businesses is a unique business model, and we see this as a great opportunity to serve Flipkart’s physical as well as digital infrastructure needs,” said Karan Adani, CEO of Adani Ports and Special Economic Zone (APSEZ).