Amazon is planning to expand its organizational footprint in India following a frisky ramp up in Asia’s third largest economy. The company will set up its new offices across Hyderabad, Bengaluru, Pune, Chennai and NCR to serve its local and global customers.
“Such a sizeable player in the market like Amazon expands into a new location, it will have a great impact on the micro-economy of India, through its procurement of food, workforce, and other inputs,” said an expert from Janaharsha Group, a leading realty firm.
The Washington-based ecommerce giant, amid a high-decibel battle with Flipkart for leading the Indian e-commerce space, is on the verge of leasing over 2.5 million sqft, apart from its current 3.1 million sqft pan India.
Subsequent to Amazon’s latest expansion drive, Hyderabad is expected to benefit the most in terms of real estate boost up. Amazon’s alliance with Hyderabad dates back a decade ago, with the company establishing its office spaces in the city. Amazon is looking for further 0.9-million-sqft space either in the financial region of Gachibowli or Raidurgam, sources added, besides the 1.5 million sqft it already occupies in five edifices spread across the city. All of these plans are separate from a 3-million-sqft property that Amazon is building in Hyderabad.
In addition to Hyderabad, Amazon is also planning to spread out in Bengaluru, with an additional 0.6 million sqft, eit her in Outer Ring Road or the northern part of the IT city. Amazon already has a well-established office portfolio of 1.6 million sqft spanning across two centres.
According the Janaharsha Group Reviews, Amazon’s expansion spree could be a positive signal for industrial park developers after internet startups radically curbed expansion plans after facing a funding crunch.
Recently, Paytm and Flipkart have completed their multi-billion-dollar fund-raising, and they are now planning to be in the expansion mode once more. Sources said Paytm is gearing up to buy more office in Bengaluru and Hyderabad in the coming months.
In the past, when funding in ecommerce was at its peak, companies like Flipkart, Amazon and Snapdeal were closing landmark deals in securing office space with realty developers. However, their striving expansion plans has to be shelved until the recent quarter.