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ATS gets Rs 207 crore for scaling up warehousing
12 Jun '17
2 min read
The logistics arm of Amazon India, Amazon Transportation Services (ATS), has got Rs 207 crore from Amazon Corporate Holdings Singapore and Amazon Malaysia. The allocation marks scaling up of warehousing and fulfillment network by both Amazon India and its competitor Flipkart. In Spetember 2016, ATS had received Rs 67 crore from the parent company.
According to a leading daily report, the details of the allocation to ATS are present in the documents filed with the registrar of companies.
The warehousing and fulfilment network are being scaled up by the two companies to cater to specialised lines of business such as heavy and bulky categories including furniture and large appliances, and for their foray into food retail and play in FMCG, the report said.
Amazon had announced setting up of seven new fulfilment centres in May 2017. The company has invested heavily in increasing its presence across multiple cities through warehouse network. It currently has a network of 41 fulfilment centres. The network will allow greater flexibility to sellers to store their inventory with the goods and services tax rolling out on July 1, 2017, the report said.
CEO Jeff Bezos said the marketplace was one of the fastest growing platforms in India. "The team has increased prime selection by 75 per cent since launching the programme nine months ago and increased the fulfilment capacity for sellers by 26 per cent already this year," Bezos said, according to the report.
The portal currently has 1.4 lakh sellers with 80 per cent using the Fulfilled by Amazon model to sell their goods, which requires them to store inventory at Amazon run warehouses.
The report said that Bezos had increased the capital commitment to India from $2 billion to $5 billion in June 2016. Of this, Rs 7,000 crore was infused in the marketplace entity, Amazon Seller Services, in 2016 alone. This year, Amazon India has already pumped in Rs 67 crore in Amazon Pay and Rs 100 crore in Amazon Wholesale, which runs the AmazonBusiness entity for business-to-business transactions. Amazon India proposes to invest $500 million over time in food retail having applied for a FDI license for creating its own supply chain for food retail and delivering fresh produce. (SV)
According to a leading daily report, the details of the allocation to ATS are present in the documents filed with the registrar of companies.
The warehousing and fulfilment network are being scaled up by the two companies to cater to specialised lines of business such as heavy and bulky categories including furniture and large appliances, and for their foray into food retail and play in FMCG, the report said.
Amazon had announced setting up of seven new fulfilment centres in May 2017. The company has invested heavily in increasing its presence across multiple cities through warehouse network. It currently has a network of 41 fulfilment centres. The network will allow greater flexibility to sellers to store their inventory with the goods and services tax rolling out on July 1, 2017, the report said.
CEO Jeff Bezos said the marketplace was one of the fastest growing platforms in India. "The team has increased prime selection by 75 per cent since launching the programme nine months ago and increased the fulfilment capacity for sellers by 26 per cent already this year," Bezos said, according to the report.
The portal currently has 1.4 lakh sellers with 80 per cent using the Fulfilled by Amazon model to sell their goods, which requires them to store inventory at Amazon run warehouses.
The report said that Bezos had increased the capital commitment to India from $2 billion to $5 billion in June 2016. Of this, Rs 7,000 crore was infused in the marketplace entity, Amazon Seller Services, in 2016 alone. This year, Amazon India has already pumped in Rs 67 crore in Amazon Pay and Rs 100 crore in Amazon Wholesale, which runs the AmazonBusiness entity for business-to-business transactions. Amazon India proposes to invest $500 million over time in food retail having applied for a FDI license for creating its own supply chain for food retail and delivering fresh produce. (SV)
Fibre2Fashion News Desk – India
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