Amazon bets big on India with mega-office

HYDERABAD: With 49 elevators that move one floor per second and zumba classes for its more than 15,000 employees, Amazon's new Indian headquarters, its largest building worldwide, matches its ambitions in a vast but challenging market.

The US retail giant UU. He launched his first site in the country in 2013 and is immersed in a fierce battle with Walmart, which bought a 77 percent stake in the local e-commerce giant Flipkart for $ 16 billion last year.

For Amazon, India is a very important geography, the human resources director of the firm for India and the Middle East, Deepti Varma, told AFP in the gleaming office building 86 meters (282 feet) high in the technology center from southern Hyderabad

While the prospects for success in the great nation are tempting, the risks are also high, as Amazon and Flipkart incur large losses as they expand and try to access new markets in Asia's third largest economy.

Amazon campus 2Amazon campus 2 (Interior: Amazon's new campus building in Hyderabad)

Both firms will also face fierce competition from Reliance Industries Indian conglomerate, led by the richest man in Asia, Mukesh Ambani, who is preparing to face the two US companies with their own e-commerce platform.

The bureaucratic obstacles present new challenges.

The new e-commerce rules that went into effect in February banned companies like Amazon from selling products from companies in which they have a stake. They are also prohibited from entering into exclusive agreements with vendors.

The regulations were introduced after traditional retailers complained that electronic retailers unfairly sold products at discounted prices.

In the future, the challenges focus more on regulation and on how to navigate the regulatory and regulatory environment, Ankur Bisen of the Technopak consultancy based in Delhi told AFP.

We've seen how some of the policy announcements have taken them by surprise.

Amazon has already allocated $ 5 billion in investment funds for India, where one in three people use the Internet, a figure that is expected to increase by 300 million by 2020, mainly due to the increasing use of smartphones.

Amazon campusAmazon campus (New campus of Amazon Hyderabad)

India's e-commerce sales are expected to triple between now and 2022, when they are likely to exceed the $ 100 billion mark, according to a recent investigation by the NASSCOM industry agency and PricewaterhouseCoopers.

Walmart, the world's largest retailer, said in May after reporting its first quarter earnings that despite the losses in Flipkart, we still believe it is a very solid long-term investment in a compelling market.

India is also an important source of employment for Amazon's global operations with some 62,000 full-time employees and 155,000 hired employees.

Bisen said that the Hyderabad campus is a signal to the government that we are increasing our base in India and making sure that there is a lot of India integrated into Amazon's global history.

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