E-Commerce major Amazon has chosen Telangana over the neighbouring state of Karnataka to set up its largest fulfilment centre (FC) in the country.
The US-based firm, which has been facing taxation issues in Karnataka, said it has put its proposed investments in the state on hold till the matters are resolved.
The e-commerce major last year had announced investment of USD 2 billion (about Rs 12,500 crore) in the country.
The new FC in India will come up near Kottur, on the outskirts of Hyderabad. Spread over 280,000 sq ft, the unit will become operational by May this year.
This will enable Amazon to ensure faster and quicker delivery of products to stay ahead as it competes head on with domestic rivals like Flipkart and Snapdeal.
No investment details were disclosed. “This is the largest investment in infrastructure in any single state, to date, by Amazon in India. The FC will allow Amazon to offer its Fulfilment by Amazon (FBA) service to thousands of small and medium businesses in the state and empower them to gain access to and service customers across the country at significantly low operating costs,” Amazon Seller Services said in a statement
With the new FC in Telangana, Amazon will have 11 FCs operational across nine states in India covering a total of over one million square feet space with a storage capacity of over 2.5 million cubic feet.
“The new fulfillment infrastructure and customer service will allow Amazon to do the heavy lifting for the thousands of small and medium sellers from the state and help them grow profitably,” Amazon Senior Vice President Worldwide Operations and Customer Service Dave Clarks said
