E-commerce giant Amazon launches Largest Fulfilment in Hyderabad

Hyderabad has become the center point for renting spaces for IT companies and e-commerce giants. Some days back Microsoft had rented an office space for 15 years from the Salarpuria Sattva. The lease is for the space of 200,000 sq ft of ‘premium office space’ at Knowledge City in Hyderabad and the company plans to find another 250,000 sq ft of space during the next phase of expansion.

Amazon has also taken up the steps to lease a space for its warehouse at Madhapur, which is the suburb of Hyderabad and is under construction, Phoenix Group. The source who was close to the concept said “In the first phase, Amazon will occupy 250,000 sq ft with an option to expand it to 6 lakh sq ft over the next one and a half years.” The source also added “It will be occupied in two phases. Amazon will be paying a rent of around Rs 54 per sq ft. The facility will be ready by the end of December.”

Looks like the vacancy stats have attracted the international business giants to an extent that the base in India gives them the cost reduction facility. It is observed by JLL India, that the third-lowest vacancy level is found in Hyderabad compared to that of metros which is at 9%. Bangalore has 4% vacancy levels and Pune has 5%.

Again, it is reported that Amazon in another two years, is planning to house in Hyderabad, the ‘technology development’ and the ‘back-end process of operations’ and this would include Amazon’s global business. The space is believed to be accommodated for a 3 million sq ft facility in this regard.

The managing director of Cushman and Wakefeild said “Business sentiments have certainly improved and this is clear in office leasing trends,” He also added “We have seen several companies looking at a long-term perspective and pre-leasing office space. For 2017, more than 70% of the upcoming space is already leased and there are active enquiries for space coming up in 2018 and 2019.”

Compared to the space occupied by flipkart, Amazon has 3.1million sq ft of office space in India. The number in this regard seems to be greater than four times of flipkart’s which has 7 lakh sq ft on rent.

The general view of the source related to this argument said “The American company has services here that cater to its global operations and that require space. The new facility will cater to overall e-commerce business of Amazon,”

It should be noted here that, the orders of the company (Amazon) need to be met on time and this challenge would have come on the priority list of Amazon for the above-mentioned move.