Global e-commerce giant Amazon on Wednesday opened its biggest campus in the world in Hyderabad as it expands aggressively in a bid to capture the Indian market, one of the fastest-growing consumer markets in the world.
The new Hyderabad campus, which is Amazon’s first owned office building outside the U.S, is spread over 9.5 acres and can house more than 15,000 employees. Overall, Amazon has more than 62,000 full-time employees in India.
In India, where more than 90% of retail is controlled by mom-and-pop stores, both Amazon and its rival Walmart, which bought a 77% stake in Flipkart in a landmark $16-billion deal last year, are locked in a battle for online supremacy. Both companies are also courting neighbourhood stores, or kiranas, for last mile delivery and expanding their reach.
India, according to a recent Boston Consulting Group report, is expected to become the third-largest consumer economy by 2025, reaching $400 billion in consumption, and everyone from retail giants to conglomerates like Reliance Industries want a slice of the pie.
Amit Agarwal, senior vice president and country manager of Amazon India, in an interview with Fortune India earlier this year, had said the company has invested nearly $5 billion in India over the past five years on innovation, technology, and the creation of an infrastructure that can cater to the needs of 100 million online shoppers.
“Over the last 15 years, we have invested significantly in India across 30 office spaces, the AWS APAC Region in Mumbai, 50 fulfilment centres in 13 states of India as well as hundreds of delivery stations and sort centres, creating nearly 200,000 jobs in India,” said Agarwal.
The company, which reportedly is also in talks to buy 10% in the Future Group, delivers to all serviceable PIN codes in India, offering over 170 million products from more than 400,000 sellers.