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Flipkart Partners with The Adani Group to Build New Data Center

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Flipkart, one of India’s top online marketplaces, had signed an agreement to a strategic and commercial partnership with Adani Group, India’s top multinational infrastructure company. In the two-way relationship, Flipkart is working on strengthening its supply channel infrastructure and enhancing further the capability of serving its fast-group customer base with Adani Logistics Limited, a country's larger diversified end-to-end logistics service provider and a wholly-owned subsidiary of Adani Ports and Special Economic Zone Limited.

Gautam Adani, Chairman of Adani Group, tweeted, “Homegrown e-commerce giant Flipkart is our new strategic partner. In the two-prong partnership, AdaniConneX will build their new Tier 4 data centre and Adani Logistics, India's leader in logistics; will build their 534,000 sqft fulfilment centre. Thousands of new jobs in Mumbai,”

Karan Adani, Chief Executive Officer, Adani Ports and the Special Economic Zone (APSEZ), addressing the strategic partnership between the two companies said, "I am pleased that two of India's fastest-growing companies are working together to develop some of the infrastructure our nation needs, both vital and cutting-edge. This should be all about Atmanirbharta."

This partnership will induce Adani Logistics Limited to build a huge 534,000 sqft fulfillment center in its soon to expect logistics hub in Mumbai, which makes Flipkart leased to state the growing demand for e-commerce in Western India and to also support market access of several sellers including MSMEs.

"This large collaboration across our businesses in logistics and data centers, which we see as a great opportunity to serve both the physical and digital infrastructure needs of Flipkart, is a unique business model. In order to define e-commerce adoption in India, Flipkart has played a role both through its value and its continued technological innovation. We expect a long and productive relationship in order to concentrate on learning from one another and exploiting our common strengths in order to prioritize customers and the growth of the MSME ecosystem in India”, added Karan.

Flipkart Group CEO, Kalyan Krishnamurthy, said, "in the way it has worked to develop infrastructure across India, the Adani Group is unparalleled. It was an exceptional mix of logistics, real estates, renewable energy and the capacity of the data centre. Our partnership with the Adani Group to reinforce our supply chain and technology infrastructure is very important to us."

The center is said to be effective in the third quarter of 2022 and will have the capacity to hold 10 units of the sellers’ inventory regardless of the time. Besides strengthening Flipkart’s supply chain infrastructure to support MSMEs and sellers, the facility will enhance local employments as well as create 2,500 direct jobs and thousands of direct jobs.

Besides this partnership, Flipkart is set to establish its third data center at Adaniconnex Private Limited and in turn strengthen the latter’s world class expertise and industry leading data center technology solutions. The AdaniConneX data center offers Flipkart the ability to design a data centre that addresses its increasing infrastructure needs with a major emphasis on security and data retention in India locally.

Flipkart Group CEO, Kalyan Krishnamurthy, said, "in the way it has worked to develop infrastructure across India, the Adani Group is unparalleled. It was an exceptional mix of logistics, real estates, renewable energy and the capacity of the data centre. Our partnership with the Adani Group to reinforce our supply chain and technology infrastructure is very important to us."

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