Flipkart partners Adani Group for data centre, logistics hub

Flipkart will set up its third data centre at AdaniConneX Pvt Ltd’s Chennai based facility, (MINT_PRINT)Premium
Flipkart will set up its third data centre at AdaniConneX Pvt Ltd’s Chennai based facility, (MINT_PRINT)
3 min read . Updated: 12 Apr 2021, 10:07 AM IST Madhurima Nandy

Bengaluru: Flipkart has entered into a strategic and commercial partnership with infrastructure company Adani Group to set up a data centre as well as a fulfilment centre, the e-commerce major said on Monday.

In a two-pronged partnership, Flipkart will work with Adani Logistics Ltd, which provides end-to-end logistics services and is a subsidiary of Adani Ports & Special Economic Zone Ltd, to strengthen its supply chain infrastructure and enhance its ability to serve its rapidly growing base of customers.

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Flipkart will set up its third data centre at AdaniConneX Pvt Ltd’s Chennai based facility, leveraging AdaniConnes’s data centre technology solutions.

AdaniConneX is a new joint venture between EdgeConneX and Adani Enterprises Ltd.

As part of this partnership, Adani Logistics will construct a 534,000 sq. ft. fulfilment centre in its upcoming logistics hub in Mumbai that will be leased to Flipkart to address the growing demand for e-commerce in western India and support market access of several thousands of sellers and MSMEs in the region.

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 also create 2,500 direct jobs and thousands of indirect jobs.

The partnership will also see Flipkart developing its third data centre at the AdaniConneX facility as a part of one of the largest private cloud deployments in the country, thereby further strengthening its growing marketplace e-commerce business in India. The AdaniConneX data centre is a new facility to enable Flipkart to design the data centre to its growing infrastructure needs with a significant focus on security and keeping data locally within India.

Karan Adani, CEO, Adani Ports and Special Economic Zone (APSEZ) said, “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. This is what Atmanirbharta should be all about. 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."

Flipkart has been instrumental in defining e-commerce adoption in India, both through the value it creates and its constant technological innovation to serve its consumers. "We look forward to a long and fruitful partnership as we focus on learning from each other as well as leveraging our mutual strengths to prioritise consumers and development of India’s MSME ecosystem," Adani added.

Kalyan Krishnamurthy, CEO, Flipkart Group, said, “What it (Adani Group) brought to us was 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."

"At the Flipkart Group, we are focused on ensuring that our customers get access to a wide range of products made available by sellers across the country as we continuously innovate to drive greater affordability. Our logistics network and technology stack are instrumental in making this a reality. 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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