Flipkart has chosen Telangana to set up its largest warehouse in the country, even Karnataka government tried its level best to drag Flipkart to its state.
Across the area of 2.2 lakh sq.ft, the largest warehouse of Flipkart will be set up in Telangana’s state capital Hyderabad. This fulfillment centre is expected to ship out 1.2 lakh items on a daily basis.
To keep a constant and strict check on the quality, the fulfillment centre will consist of fully automated segregators and profilers and also automated conveyor belts for sorting the inventory.
Employment opportunities through Flipkart warehouse in Telangana
Through this largest warehouse set up in the state, around 2000 people can avail the employment directly and over 15000 people indirectly.
To set up the 16 warehouses across India, Flipkart decided to allocate Rs. 400 crores and is even looking forward to invest Rs 2,000-2,500 crore in the next 4-5 years to strengthen Flipkart’s supply chain.
Karnataka govt.’s failure made Flipkart to opt Telangana!
There are already three Flipkart fulfillment centres in Karnataka. But reportedly, Flipkart was disappointed with the government’s negligence in reversing the flight of capital to the neighboring states or relaxing norms for e-commerce business. So, Flipkart opted Telangana state this time, for its new warehouse set up.
Reacting to the issue, Binny Bansal, cofounder and COO of Flipkart said, “There is clarity on taxation in Telangana. We are confident of reaching 70% of our customers in South India in a single day.”
Not only Flipkart, but also Amazon faced troubles in Karnataka
Recently, Amazon company members said that they are just stocking, packing and dispatching the products, but are not doing any kind of direct business. So they demanded the exemption on VAT and asked to collect it from the sellers. But Karnataka government said that, there is no provision in the VAT rules for retailers to take shared space at Amazon's FCs.
Even Flipkart had the similar taxation issues and so unable to opt Karnataka state for new warehouses.
Adding to this, Sandeep Ladda, a national leader, technology and e-commerce at PwC India, said, “The clarity is lacking on how the laws are interpreted in Karnataka state. Taking all the stakeholders into consideration, the government should come out with a consultation paper.”
“VAT-related issues are doing the rounds for quite some time. The current law states that the seller has to discharge the tax liabilities. The Karnataka government should be clearer about the way, the law has to be administered.” Sandeep added.
By Phani Ch
