Flipkart Picks Telangana For Its Largest Warehouse

[athletics]

Flipkart picks Telangana for its largest warehouse


BENGALURU: Even as the Karnataka government drags its feet over tackling the e-commerce taxation quagmire, India's largest e-tailer Flipkart has chosen Telangana over Karnataka to set up its largest and 16th warehouse in the country.

Flipkart is opening the fulfillment centre in Hyderabad, which is spread over 2.2 lakh sq ft and is expected to ship out 1.2 lakh items every day once it becomes fully operational. The centre will have fully automated segregators, profilers to keep a tight check on quality, and automated conveyor belts for sorting inventory. The warehouse is expected to create 2,000 jobs directly and 10,000-15,000 jobs indirectly. Flipkart has pumped in Rs 400 crore to set up the 16 warehouses across the country and is looking to invest Rs 2,000-2,500 crore in the next 4-5 years to strengthen its supply chain.

Although Flipkart has three fulfilment centres located in Karnataka - one in Whitefield and two in Jigani - its choice of location for its newest warehouse is the direct result of Karnataka government's apathy in reversing the flight of capital to neighbouring states or relaxing norms for e-commerce business in the state.


"In terms of location preference, there were a few constraints in choosing Karnataka. We don't have clarity on regulatory aspects for e-commerce here (Karnataka). If there is no clarity on the e-commerce taxation, no one would want to set up warehousing facilities here. There is an ongoing dialogue with the government and we hope to reach some clarity within a few days," said Binny Bansal, cofounder and COO of Flipkart. "We were locating another place if not Karnataka, and Telangana was the next place from where we could reach majority of our customers in South India.There is clarity on taxation in Telangana. From there, we hope to reach 70% of our customers in South India in a single day," he said.

More recently, e-commerce behemoth Amazon ran into trouble with Karnataka's commercial taxes department for allowing sellers to register the fulfilment centre as an additional place of business. This led to the state cancelling the licences of many smaller merchants registered on Amazon.

Amazon has been demanding exemption on VAT payment saying its fulfillment centre only stocked, packed and dispatched products and was not doing business directly. It wants the government to collect VAT from sellers. The state says there is no provision in the VAT rules for retailers to take shared space at Amazon's FCs.

Flipkart too is seeking a clarity on e-commerce-related taxation and VAT issues. "The sellers from different states have their inventory stored here and they are being shipped by a third party like us. There are taxation concerns around that," said Bansal.

Sandeep Ladda, national leader, technology and e-commerce at PwC India, said there is no clarity on how laws are interpreted in Karnataka. "The state government should come out with a consultation paper taking all the stakeholders into consideration. VAT-related issues have been going around for quite some time. The current law states that the seller has to discharge the tax liabilities. The government should be clearer how the law has to be administered."

[CKRAVI]

First Amazon, ippudu Flipkart.. good for TG..more employment oppurtunities

[cool_dood]

gp  sHa_clap4

[cool_dood]

inni samvatsaraalu TG raani opps ipudu vostunnnayi ante - this is making me think that united AP effed TG. so good for TG to be by itself.

 

PS : im frm AP and also AP effed TG in da sense of politicians playing games - has nothing to give or take if u r frm AP or TG  :police:

[Feelingbad]

inni samvatsaraalu TG raani opps ipudu vostunnnayi ante - this is making me think that united AP effed TG. so good for TG to be by itself.

 

PS : im frm AP and also AP effed TG in da sense of politicians playing games - has nothing to give or take if u r frm AP or TG  :police:

 

Does your post make sense even  to you ?

 

Google, Infy, MS, ISB, Intnl airport, Ringroad, flyovers, gachibowli sports vilage.... etc., etc., anni united AP loney ochindi.... 

 

btw, Good news for TG.... 

[pora_pithre]

Andhris..come on edsandi..

[cool_dood]

Does your post make sense even  to you ?

 

Google, Infy, MS, ISB, Intnl airport, Ringroad, flyovers, gachibowli sports vilage.... etc., etc., anni united AP loney ochindi.... 

 

btw, Good news for TG.... 

 

I think u have made ur point clear - I dont know much/least bothered about politics - but in one way or the other it makes me feel/think like united AP lo too much politics untunde  especially ilanti big companies tho back stage lobbying too much untunde - I believe after TG the political scenarios got their air cleared out. Anyways no offense to either AP or TG ppl - I am or was talking only about political aspirations in or out favored towards TG.

[cool_dood]

Andhris..come on edsandi..

enduku vaay edsudu - hyd lo industry osthe overall ga opportunities perguthaayi kada - it doesnt matter if u r frm ap or tg - atleast as of now we dont need visa or employment authorization to work in India know 

[tom bhayya]

inni samvatsaraalu TG raani opps ipudu vostunnnayi ante - this is making me think that united AP effed TG. so good for TG to be by itself.

 

PS : im frm AP and also AP effed TG in da sense of politicians playing games - has nothing to give or take if u r frm AP or TG  :police:

kcr uncle valla uncertainity vachi andharu back step vesaaru, now no more agitations kadha so every one is coming back   separate state movement has hurt hyd the most. pinkies elago oppukoru anuko

[4Vikram]

good for tg 

[athletics]

separate state movement has hurt hyd the most. pinkies elago oppukoru anuko

No body denied it, even KTR said multiple times Hyd suffered becausebof uncertainity in the past due of TG agitation, actually even TRS govt form ayina taruvata kuda chala apprenshions unde..now atlast we can say the govt is successful putting all those apprenshions to rest.

If you have observed or not, there is zero corruption at this stage like handing over lands to fake benamis that happened during YSR regime and almost all allocations ended up in some kind of a mess(even companies like google are not spared).

I met this guy jayesh ranjan(also a iim alumni) TG It secretary, he told us in small gatheing in bay area that when some industrailist(chota ambani) came to meet Kcr in his office regarding a proposal and KCR told him during their meeting and infront of his minster and secretaries that "yaha kuch lena dena nahi hai - saab kuch transparent hai and should expect the same from his ministers and offficial bureaucracy" . IMO It is that kind of attitude instilling faith and bringing back industrailists to give TG a second chance

[shivakumar577]

GP

[CKRAVI]

No body denied it, even KTR said multiple times Hyd suffered becausebof uncertainity in the past due of TG agitation, actually even TRS govt form ayina taruvata kuda chala apprenshions unde..now atlast we can say the govt is successful putting all those apprenshions to rest.

If you have observed or not, there is zero corruption at this stage like handing over lands to fake benamis that happened during YSR regime and almost all allocations ended up in some kind of a mess(even companies like google are not spared).

I met this guy jayesh ranjan(also a iim alumni) TG It secretary, he told us in small gatheing in bay area that when some industrailist(chota ambani) came to meet Kcr in his office regarding a proposal and KCR told him during their meeting and infront of his minster and secretaries that "yaha kuch lena dena nahi hai - saab kuch transparent hai and should expect the same from his ministers and offficial bureaucracy" . IMO It is that kind of attitude instilling faith and bringing back industrailists to give TG a second chance

 

GP 

[sattipandu]

cheskuntey cheskunnadu, sakkaga order chesin item pampanu edavani,  okati order chestey  inkoti deliver cheyyatam lo ditta flipkart

[athletics]

cheskuntey cheskunnadu, sakkaga order chesin item pampanu edavani, okati order chestey inkoti deliver cheyyatam lo ditta flipkart

Everyone has those teething problems, they are not amazon and they are building one from scratch, i agree it needs to be seen how good their customer service is..