Amazon Expands Supply Chain in India with New Warehouse in Kolkata
In a strategic move to enhance its logistics capabilities in India, Amazon has leased a substantial 600,000 square foot warehouse at Oswal Logistics Park in Kolkata. This development marks a significant leap in the company’s efforts to strengthen its supply chain and last-mile delivery infrastructure across the subcontinent. Set to be operational between 2027 and 2028, this facility is a testament to Amazon’s commitment to serving its growing customer base in one of the world’s largest e-commerce markets.
The decision to establish a warehouse in Kolkata aligns with Amazon’s broader strategy to optimize its operations in India, a country where e-commerce has witnessed explosive growth in recent years. The logistics network is crucial for Amazon, especially as it seeks to ensure timely deliveries and maintain customer satisfaction in a highly competitive marketplace. By expanding its footprint in Kolkata, Amazon is positioning itself to better cater to the eastern region of India, which has seen a surge in online shopping, particularly during and after the pandemic.
The financial aspects of this lease are also noteworthy. Amazon will be paying ₹32 per square foot in monthly rent, which is a competitive rate for such a sizable facility in a prime location. This move not only reflects Amazon’s significant investment in India but also underscores the growing importance of Kolkata as a logistics hub. With its strategic location and improving infrastructure, the city is poised to become a key player in the supply chain landscape.
This new warehouse is not an isolated development. In 2025, Amazon had already taken a significant step by leasing over 800,000 square feet in the Delhi NCR region. This earlier move demonstrated Amazon’s aggressive expansion strategy, focusing on building a robust logistics network that can support its vast array of products and services. The combination of these two leases signals Amazon’s intent to build a comprehensive supply chain that can meet the demands of its diverse customer base across different regions of India.
The implications of Amazon’s expansion in Kolkata extend beyond the company itself. Such investments contribute to local economies, creating jobs and stimulating growth in related sectors. Warehousing and logistics facilities require a range of support services, from transportation to maintenance, which can lead to increased economic activity in the area. Moreover, as Amazon continues to invest in its infrastructure, it sets a benchmark for other companies in the e-commerce and logistics sectors to follow.
Furthermore, Amazon’s focus on enhancing its last-mile delivery infrastructure is crucial. In urban areas, last-mile delivery represents one of the most challenging aspects of logistics, often impacting customer satisfaction directly. By establishing a warehouse in Kolkata, Amazon can facilitate faster order fulfillment and delivery times, which are critical in retaining customers in a highly competitive e-commerce environment. This strategic move not only helps in meeting immediate customer needs but also enhances Amazon’s brand reputation as a reliable online retailer.
The timing of this expansion is also significant. As India continues to embrace digital transformation, more consumers are turning to online shopping for convenience and variety. According to recent studies, the Indian e-commerce market is expected to double in size by 2025. This presents a lucrative opportunity for Amazon, which is striving to capture a larger share of the market. By bolstering its supply chain capabilities now, Amazon positions itself to meet future demand effectively.
In conclusion, Amazon’s lease of a 600,000 square foot facility in Kolkata is a strategic decision that reinforces its commitment to expanding its logistics capabilities in India. This move not only strengthens its last-mile delivery infrastructure but also contributes to the local economy and sets a standard for the logistics sector. As the e-commerce landscape continues to evolve, Amazon’s proactive measures will likely play a crucial role in shaping the future of retail in India.
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