Amazon India has been doing wonders in the country. It has managed to grab an audience which is loyal and above all has a retention rate which is better than any company in the country. Flipkart might still lead the e-commerce race in India but Amazon is way ahead when it comes to offering multiple services for minimum pricing.
Amazon has been a company for all in India. It has grabbed eyeballs with Amazon Prime Video and ears with Amazon Music. It has also entered people’s houses with Alexa and helps people complete their needs through Amazon.in. The company has been a success if not anything in the subcontinent of India. The plans in India are to grow larger than it is right now and with Walmart entering the country via Flipkart, it will only aim higher.
That being said, there is news coming out of Amazon’s Hyderabad logistic facility. The news is about the American company increasing the capacity of its warehouse in the capital of Telangana. Previously, the capacity of the warehouse was around 4 lakh sq ft which has been increased to 6.5 lakh sq ft. A person aware of the matters was talking to ET. The source said, “The additional logistics space will come up next to its existing capacity in GMR’s Hyderabad Logistic Park and will be in operation in 2019.”
The investment needed was huge and Amazon have done it. The company has time and again pledged money in India. Even after facing a loss of $45 billion due to the new FDI policy, the company has shown that India is in its plans for the future. Amazon in a statement neither denied nor confirmed the deal that went through for the logistics space.
The statement simply specified the importance of investments in key areas and talked about how seller enablement is also something the company looks forward to improving in the near future. The statement read, “Amazon is focused on building a strong and robust fulfillment network in India and continues to invest significantly in technology, logistics, and infrastructure as well as in seller enablement.”
The investment, if the rumors are to be believed is around $5 billion. It is not only for the logistics expansion but for many things in one. The technology platform in India is not at its best and the company wants to better it with this investment. Amazon is looking at India like every company which is new looks.
There are a lot of customers still to emerge into the e-commerce market and India still has not reached its capacity. The point of stagnation is still very far and there are going to be opportunities which will require preparation. Amazon is doing just that by investing and racking up its technological platform in the country with talent.