Flipkart is planning to invest in setting up a 4.5 million sqft state-of-the-art logistics park in Karnataka. The setting up of this park, Flipkart said, will create 20,000 jobs. According to the e-commerce giant, the logistics park which includes the direct recruitment of 5,000 people while 15,000 jobs would be created indirectly. The ‘Indirect job creation’ includes peripheral industries, supporting logistics activities like trucking, C&F’s, services etc. The fully-integrated park will house several Flipkart Fulfilment Centres which will improve supply chain efficiency and reduce the costs by deploying mechanised warehousing.

The park will be located on the outskirts of Bengaluru and is connected to the city by road. Flipkart, in order to achieve this, is planning to acquire around 100 acres of land.

But why Karnataka?

As Flipkart was started in Bengaluru and Karnataka is believed to have more business-friendly policies it will act as a catalyst to Flipkart’s growth.

What are the Economic benefits?

According to the World Bank, the logistics cost in India is among the highest in the world. It includes accounting for 14 percent of total value of goods as compared to 6-8 percent in developed economies. A fully-integrated technology park will help raise the economic profile of the region and also adds to the government’s Logistics Efficiency Enhancement Programme (LEEP). A logistics park directly benefits the state through employment generations, growth in ancillary industries, rural development, public revenues, increased trade and personal income levels.

Here are the benefits of a logistics park:

Enhanced storage & supply chain capacity to benefit industries in the entire region with faster deliveries at lower costs

· Helps attract new investments in the vicinity, giving a massive boost to the logistics industry

· Rural development through construction, increased settlement, connectivity, education

· Potential for local trade community to expand reach across India

· Rural skill development through upskilling employment in the high-tech industry

Sustainability: Flipkart intends to build the logistics park on the principle of sustainability to curb any wastage of valuable natural resources.

· The park will be a net power exporter by deploying solar panels on warehouse roofs

· The logistics park will be carbon neutral

· Water positive through Rain Water Harvesting (RWH), replenishing groundwater table

· Non-polluting industry and waste recycling facilities

Future expansion: The logistics park will enable smaller hubs in multiple cities to create a hub-and-spoke model, the standard followed by logistics industries globally.