Amazon India To Invest INR 2,000 Cr To Strengthen Logistics

SUMMARY

The capital will be deployed in expanding and upgrading its operations infrastructure, while also improving associate safety and well-being programs

Further, a portion of the investment will go into developing new tools and technology for Amazon’s fulfillment network

The company is focusing on strengthening its operation model, which would ease delivery to all serviceable pin-codes across India

Amazon India is looking to invest INR 2,000 Cr (around $230 Mn) to ramp up its logistics and operations network.

The company said in a statement that the capital will be deployed in expanding and upgrading its operations infrastructure, while also improving associate safety and well-being programs.

Further, a portion of the investment will go into developing new tools and technology for Amazon’s fulfillment network.

The company is focusing on strengthening its operation model, which would ease delivery to all serviceable pin-codes across India.

Towards improving the accessibility of deliveries, Amazon will deploy some funds into launching new sites and upgrading its existing facilities across fulfillment, sortation and delivery networks.

The infrastructure upgrade would involve centres operating with state-of-the art technology to minimise energy usage, and these centres would be designed in consideration of employees with disabilities to feel more safe and more accessible.

“By strengthening our infrastructure capabilities, enhancing processing capacity, and implementing state-of-the-art technology, we are positioning Amazon to better serve customers throughout India while supporting our employees, associates and partners who are the heart of it all,” said Abhinav Singh, vice president of operations at Amazon India and Australia.

The development comes a month after the ecommerce giant’s board approved a proposal to merge its Indian logistics arm, Amazon Transportation Services (ATS), with its primary marketplace entity, Amazon Seller Services.

Meanwhile, Amazon also infused INR 350 Cr into its digital payments arm Amazon Pay India in April, with a vision to scale up its presence in the country’s UPI market.

Amazon doubling down on expanding its fulfillment centres comes at a time when numerous ecommerce companies and quick commerce startups have been increasing their dark store count and fulfillment centre strength to retain their market share amid rising competition.

Previously, Amazon India launched three new fulfillment centres in Delhi NCR, Guwahati and Patna to support over 2.5 Lakh sellers in the region right before the Great Indian Festival sale, last year.

The expansion of fulfillment centres aims to ensure fast deliveries, provide 24×7 operational excellence at competitive costs and unveil a unique brand experience every time to wow customers.

Notably, the country is home to more than 5,100 active e–commerce startups and several industry incumbents, based on Inc42’s latest data.

According to Mordor Intelligence, the country’s ecommerce logistics market size is expected to hit $7.2 Bn by 2029, growing at a CAGR of 12.7%.