Amazon.com Inc’s largest global campus in Hyderabad opened its doors today in what comes as a determined move to dent the country’s retail sector. Built over three years, it is the first building owned by Amazon outside of the United States of America and is a strong push as it goes head to head with Walmart Inc in India.
As reported, Amazon acknowledges that in terms of total consumption, E-commerce in India only amounts to a marginal 3 per cent and the company is therefore, reliant on maintaining its neighbourhood stores.
The new campus is spread over 1.8 million sq ft of office space and can accommodate 15,000 workers. Amazon, with its headquarters in Seattle – where the largest areas fit a maximum of 5000 employees, is confident that despite being the biggest campus in the world there is still plenty of scope for growth.
The facility is set to build on a range of services that includes doorstep pick up and repair work of electronics.
Apart from the new Indian hub, Amazon is also keen on branching out in various other segments, within the nation. Reportedly, it is in negotiations to buy a 10% stake in Future Retail which is a brick & mortar retailer. Additionally, there are rumours that it is looking to add food delivery in its portfolio.
A large section of the country remains untapped by the retail forces and will prove crucial for both Amazon and Walmart, to determine their dominance in the market. Last year, Walmart spent USD 16 billion to acquire Flipkart. Amazon’s Jeff Bezos has also committed USD 5.5 billion for the company’s India operations.
Ever since it first set up shop in India in 2013, Amazon has expanded its business phenomenally in a pursuit to increase sales.