Amazon India banks on festive demand to expand infrastructure

Banking on sharp growth in the upcoming Great Indian Festival, e-commerce major Amazon on Thursday said it is expanding its infrastructure and expects the GST rate cut to further fuel festive demand.

The company said the planned investment of Rs 2,000 crore in 2025 will support a nationwide network expansion with new fulfilment centres, sortation hubs and delivery stations, officials said.

The expansion includes the launch of 12 new fulfilment centres (FCs), adding 8.6 million cubic feet of storage space and taking Amazon's total storage capacity in India to 43 million cubic feet.


In addition, six new sortation centres covering 500,000 sq ft are being added, while 30 new delivery stations have already been rolled out in recent months.

In West Bengal, a new FC has been added in Hooghly, taking the state's total to four fulfilment centres. The existing infrastructure includes three sortation centres and around 100 delivery stations.

"As a result of our network enhancements, customers in Kolkata have seen a 170 per cent year-on-year increase in same-day delivery promises," said Arindam Ganguly, Director, Amazon Transportation Services.

Without disclosing growth in value terms, he added that there had been a pre-festive growth of 20-60 per cent across a wide range of products in the state.

Also Read: Amazon India’s Great Indian Festival sale to start from September 23