Flipkart allies with Adani Group to lift supply chain: E-commerce sees an uptick trend

 

Adani Group, mainly known for port projects in Goa, Gujarat, Chennai, Andhra Pradesh, Odisha, Maharashtra Kerala and Tamil Nadu etc, has made an addition to its logistics portfolio through a new deal with Flipkart. The partnership is expected to strengthen the e-commerce player's supply chain infrastructure.

The recent EY-IVCA India Trend Book 2021 report reveals that India's e-commerce sector is expected to reach $99 billion by 2024. It also cites the pandemic as a catalyst for this positive trend since the need to maintain social distance in the new normal has prompted consumers to shop more from online platforms. Accordingly, brands too have revolutionised the way they operate.

Increased logistics contracts

Advancing technology and strategic big-ticket partnerships such as the recent Adani Group-Flipkart deal are easing historical bottlenecks and contributing to the transformation of the logistics sector in India.

Adani Group is the largest private player in India’s ports and logistics sector, with an unparalleled portfolio of ports and terminals across Goa, Gujarat, Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra and Odisha.

Its recent partnership with Flipkart would not just bolster the group’s logistics footprint but strengthen the e-commerce player's supply chain infrastructure as well. As a part of the deal, Adani Group will establish a fulfilment centre of 5.34 sq. ft. in Mumbai. With this, it also seeks to address the growing demand of e-commerce in western India and boost thousands of small-scale businesses and MSMEs that form an important part of the entire supply chain.

The partnership with Flipkart is one of the many milestones that the group has accomplished since the past year. Earlier in March, Adani Group, similar to its Goa project, received the heads-up for the development of WCT Colombo. Moreover, it is all set to acquire the remaining 25 per cent stake in Krishnapatnam Port Ltd.

The deal between Bajaj Electricals Ltd (BEL) and Mahindra Logistics Ltd, signed in March, is also one of the examples of the increasing end-to-end logistics contracts. As per the agreement, BEL will outsource its logistics to help MLL in serving its customers efficiently and strengthening its competency.

Increased adoption of digital payment

Another factor attributing to the growth of the e-commerce sector in India is the increased adoption of digital payment solutions. In the January-March quarter of 2021, online payment transactions have risen by over 76 per cent, compared to the same quarter of last year. Surprisingly, this year, tier-2 and tier-3 cities have been the major contributors of this growth and accounted for a bigger volume of the overall e-commerce sales as well.

All these factors raise the hopes of the possibility of last-mile delivery in far-flung areas, a challenge that the Indian e-commerce industry has been glaring at, for the longest time.