Post on Medial

Adani's warehousing plans need serious attention! 🙌🙌 And it has a special friend in this ride - Flipkart! But, to explain the big deal it is, you need to know about IndoSpace first. So, let’s get going on a special insights-packed ride. Here’s all you must know! .. IndoSpace is India's largest operator of Grade-A warehousing space. It has ~60mn sq feet operational capacity, and more is under construction. And it has taken 15yrs to get here. .. Meanwhile, Adani Ports and SEZ (APSEZ) is aiming to do this in just 3yrs! And the 3yrs started almost 1.5yrs ago 😅😅 -> It was shared in FY24, that the company is working on a war footing to take this to 60 mn sq ft by the end of FY26! -> This would translate into a 38x expansion in warehousing capacity from 1.6 mn sq feet This is equivalent to a disruption for the whole of the warehousing sector and must be watched out for. .. Anyhow, when we think of APSEZ, we rarely think of it as a warehousing major. But, the company and the group have always been about all-out capture of the logistics value chain. And while it has made great strides in many of those avenues, warehousing was a key missing link. But now, that’s being solved on a war footing! .. But, if it’s to build so much warehousing space, who’s gonna use it? Adani will need tenants to lease those warehouses to And that’s where Flipkart comes in! .. The Walmart-owned e-commerce giant already had big ties with Adani Group. 1️⃣ Adanis bought a 20% stake in Flipkart’s Cleartrip 2️⃣ Adanis also signed a deal to build data centre capacities exclusively for Flipkart But, there is a 3rd such deal, which is hardly ever talked about. This was announced in a 2021 press release. .. What deal? Adani Logistics, a subsidiary of APSEZ would build warehousing space for Flipkart. This began with Adani building a ~0.6mn sq ft warehouse in Mumbai. And, going forward, as Flipkart scales and will need more such space, it will have a ready supplier in Adani :) .. Thus, in Flipkart, Adani got a key likely tenant to build for and grow its presence in the booming Indian warehousing market. And mind it. Adanis are doing this at a magnificent scale of growing to 60mn sq ft by FY26 end. Means, that Adani will be powering a sizeable chunk of India’s e-commerce growth 🙏🙏 .. What does that translate to? Money! Adani will be a key beneficiary as the Indian e-commerce penetration grows, with a big portion of all orders giving a share to Adani in a way :) Thus, this is a mega new money-making avenue for APSEZ, which is not so commonly known. Did you know about this?