Flipkart largest warehouse unit come up in Hyderabad, Telangana State. Even as the Karnataka government drags its feet over tackling the e-commerce taxation quagmire, India’s largest e-tailer Flipkart has chosen Telangana over Karnataka to set up its largest and 16th warehouse in the country.
Flipkart largest warehouse unit come up in Hyderabad
Flipkart is opening the fulfillment centre in Hyderabad, which is spread over 2.2 lakh sq ft and is expected to ship out 1.2 lakh items every day once it becomes fully operational. The centre will have fully automated segregators, profilers to keep a tight check on quality, and automated conveyor belts for sorting inventory.
The warehouse is expected to create 2,000 jobs directly and 10,000-15,000 jobs indirectly. Flipkart has pumped in Rs 400 crore to set up the 16 warehouses across the country and is looking to invest Rs 2,000-2,500 crore in the next 4-5 years to strengthen its supply chain.
Although Flipkart has three fulfilment centres located in Karnataka – one in Whitefield and two in Jigani – its choice of location for its newest warehouse is the direct result of Karnataka government’s apathy in reversing the flight of capital to neighbouring states or relaxing norms for e-commerce business in the state.
“In terms of location preference, there were a few constraints in choosing Karnataka. We don’t have clarity on regulatory aspects for e-commerce here (Karnataka). If there is no clarity on the e-commerce taxation, no one would want to set up warehousing facilities here.
There is an ongoing dialogue with the government and we hope to reach some clarity within a few days,” said Binny Bansal, cofounder and COO of Flipkart. “We were locating another place if not Karnataka, and Telangana was the next place from where we could reach majority of our customers in South India.
There is clarity on taxation in Telangana. From there, we hope to reach 70% of our customers in South India in a single day,” he said.