Flipkart partners with Adani to strengthen its supply chain infrastructure

The Indian e-commerce logistics market is also booming, driven by factors such as increasing internet penetration, growing smartphone adoption, favorable demographics, and a surge in acceptance of online payments.

According to foreign media reports, Indian e-commerce platform Flipkart announced a strategic and business partnership with the Adani Group. Under this partnership, Flipkart's supply chain infrastructure will be enhanced and its ability to serve its customer base will also be improved.

Flipkart will leverage AdaniConneX’s world-class expertise and industry-leading data center technology solutions to set up its third data center at Adaniconnex Private Limited’s Chennai facility.

As part of the partnership, Adani Logistics Ltd will build a large 534,000 sq ft fulfilment centre in its upcoming Mumbai logistics hub , which will be leased to Flipkart to cater to the growing demand for e-commerce and international exports in western India.

Moreover, many e-commerce players in India are looking for alternative warehousing locations to improve business continuity and reduce the chances of delivery delays.

In this case, the cooperation between the two industry giants will have the following effects ↓

1. Strengthen the collaboration between local e-commerce and logistics . This is consistent with the idea of ​​building a local supply chain in India based on three basic elements (local manufacturing, local market and local supply chain). The establishment of fulfillment centers to support MSMEs and sellers will develop the manufacturing and supply chain parts in turn.

2. Strengthen data protection. According to the provisions of the Data Protection Act, data localization further requires data center infrastructure within the country to protect the country's digital sovereignty in an increasingly connected world.

3. Strengthen user stickiness. The cooperation between the two industry giants will provide customers with a wide variety of goods at competitive prices, thereby reducing delivery delays and promoting e-commerce sales.

4. Accelerate digital development. As e-commerce demand grows, the demand for effective supply chains and related products and services will also increase, such as automatic storage and retrieval systems (ASRS), route aggregation, supplier management, etc.

Through the partnership with Adani, Flipkart will strengthen its supply chain infrastructure in the country and aim to fend off stiff competition from other multinational companies.

logistics

India