New Delhi: Online marketplace Amazon said on Tuesday that it plans to double its storage capacity in India this year and will open at least 14 new warehouses across the country, including the seven that it recently opened to boost sales of large appliances and furniture.
Amazon India (Amazon Seller Services Pvt Ltd) said the new warehouses will be set up in Telangana, Haryana, Maharashtra, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh and be fully operational by the end of June. The expansion of its infrastructure is intended to ensure Amazon maintains its rapid sales growth. The company reported an increase in unit sales of 124% in calendar year 2016. In the first quarter of this year, it registered a jump in unit sales of 85%.
The new warehouses will cater to tier-2 and tier-3 cities across the country, as part of the company’s efforts to reach more remote parts of the country. Amazon is also doubling the storage capacity of its warehouse in Ahmedabad and increasing the storage space of its warehouse in Delhi by six times to meet higher-than-expected demand.
Including the seven new warehouses, Amazon will have 41 warehouses across nearly 13 states in the country — far more than arch-rival Flipkart. In April, Amazon had said it would open seven new warehouses to boost sales of high-priced products such as televisions, refrigerators and furniture.
“We are seeing really strong growth here. We want to ensure that Indian customers can buy anything, anytime from anywhere in the country. With the additional capacity, we will serve more sellers better," said Akhil Saxena, vice president and head of supply chain at Amazon India.
Amazon, which over the past four years has made significant market share gains at the expense of local rivals Flipkart and Snapdeal in India’s $15-billion online retail market, will continue to invest in building more infrastructure as part of its rapid expansion plan across the country.
So far, Amazon has committed to spending at least $5 billion to grow its India business. Of this it has already spent nearly $2.5 billion.