Amazon Expands Its Supply Chain with New Warehouse in Kolkata
In a strategic move to bolster its supply chain capabilities in India, Amazon has recently announced the lease of a substantial 600,000 square feet facility located in Oswal Logistics Park, Kolkata. This development is a clear indication of Amazon’s commitment to enhancing its logistics and last-mile delivery infrastructure in one of the world’s fastest-growing e-commerce markets.
The leased facility is expected to be handed over to Amazon between 2027 and 2028, aligning with the company’s long-term vision for operational excellence in the region. By securing this expansive warehouse space, Amazon aims to improve its fulfillment capabilities, ensuring that it can meet the increasing demand for online shopping in India. The decision to lease this facility comes at a time when e-commerce has seen exponential growth, particularly accelerated by the pandemic.
The financial aspect of this lease is also noteworthy; Amazon will be paying ₹32 per square foot in monthly rent. This competitive rental rate is indicative of the growing interest in logistics solutions in the region, which is becoming a critical hub for e-commerce operations. With the cost of real estate in India’s major cities fluctuating, securing a cost-effective lease is vital for maintaining profitability while scaling operations.
This latest move follows Amazon’s earlier decision in 2025 to lease over 800,000 square feet in the Delhi NCR region. The cumulative impact of these expansions illustrates the company’s aggressive approach to strengthening its presence across key metropolitan areas in India. The new Kolkata facility is expected to serve as a pivotal point in Amazon’s supply chain, facilitating quicker deliveries and enhancing customer satisfaction, a core tenet of Amazon’s operational philosophy.
The growing logistics network is not merely about expanding physical space; it is about creating a seamless experience for customers. With the rise of urbanization in India, the demand for swift and reliable delivery options has surged. Customers expect their orders to arrive within hours, not days. By investing in logistics facilities like the one in Kolkata, Amazon is positioning itself to meet these expectations head-on.
Additionally, the Kolkata warehouse will be part of a larger strategy to integrate technology into its logistics operations. Automation and data analytics are expected to play crucial roles in optimizing inventory management and streamlining order fulfillment processes. As Amazon continues to innovate, the implementation of advanced technologies in its warehouses will likely enhance efficiency and reduce operational costs.
Moreover, Amazon’s expansion in India is not only beneficial for the company but also for the local economy. The establishment of new warehouses creates job opportunities, not only within the facilities but also in the surrounding communities. This contributes to economic growth and development in the regions where Amazon operates.
The competitive landscape of e-commerce in India is fierce, with various players vying for market share. Companies such as Flipkart and Reliance are continuously innovating and expanding their own logistics networks. Amazon’s proactive approach to securing prime logistics locations is a strategic advantage that may give it the upper hand in this highly competitive environment.
In conclusion, Amazon’s lease of a 600,000 square foot facility in Kolkata represents a significant step in its ongoing efforts to enhance its supply chain infrastructure in India. By investing in logistics capabilities and focusing on last-mile delivery, Amazon is not only positioning itself to meet the growing demands of Indian consumers but also reinforcing its status as a leader in the global e-commerce landscape. As this expansion unfolds, it will be interesting to observe how it impacts both the retail sector and the broader economy in India.
ecommerce, Amazon, logistics, Kolkata, supplychain